Rose v. Spa Realty Associates

54 A.D.2d 1028, 388 N.Y.S.2d 184, 1976 N.Y. App. Div. LEXIS 14991
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 10, 1976
StatusPublished
Cited by1 cases

This text of 54 A.D.2d 1028 (Rose v. Spa Realty Associates) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose v. Spa Realty Associates, 54 A.D.2d 1028, 388 N.Y.S.2d 184, 1976 N.Y. App. Div. LEXIS 14991 (N.Y. Ct. App. 1976).

Opinion

Appeal from so much of a judgment of the Supreme Court, entered June 2, 1976 in Saratoga County, upon a decision of the court at a Trial Term, without a jury, as directs plaintiffs to pay the full purchase price in cash for such property as has been directed to be conveyed to them by defendants, and from such further portion of said judgment as extends the time for performance of other options to the extent such decree may deny plaintiffs the right to exercise an option to purchase the entire property. Plaintiffs commenced an action for specific performance based upon a contract between defendants, as sellers, and plaintiffs, as purchasers, for the sale and purchase of 76 acres in Saratoga Springs upon which plaintiffs planned to construct an extensive housing development. The contract executed June 26, 1972 provided for conveyances in stages geared generally to the progress of the housing development which was dependent upon acquiring the approval of concerned municipal authorities. As a first step after signing the agreement and delivery by purchasers of a down payment in the amount of $10,000, the purchasers were required to prepare preliminary plans for the development of the 76 acres with 800 dwelling units and to provide in those plans for the division of the area into four parcels, designated Purchase Parcels Nos. 1, 2, 3, and 4. Within Purchase Parcel No. 1, the purchasers were required to designate a one-acre subparcel for the construction of four model units. The closing to this one-acre subparcel has occurred, and purchasers have paid an additional $15,000 and have proceeded with the construction of the four dwellings. The agreement further provided, inter alia, that upon closing title to the remainder of Parcel No. 1, the consideration to be paid would be a sum to be "determined by the maximum number of dwelling units allowed by the building permits obtained” for the first purchase parcel, which shall be priced at $1,500 for each approved dwelling unit. The agreement stated "that neither party shall be obligated to close title or proceed further unless not less than one hundred and fifty (150) dwelling units are allowed within said first parcel” except as otherwise provided. The terms of payment were stated to be: "D Cash equal to 16%% of the purchase price against which the purchases will be credited with the sum of $25,000 paid for the conveyance of the one-acre parcel * * * 2) The balance by purchasers executing a purchase money mortgage” (par 3 [c]). Closing of title to this first purchase parcel was to take place on March 1, 1973, provided, however, that sellers had obtained the building permits for sewage disposal facilities, municipal water facilities and all other necessary governmental approvals for the required number of dwelling units. As specified in the agreement, the defendants were to obtain approvals for a total of not fewer than 150 dwelling units in the first [1029]*1029purchase parcel, and neither party was obligated to proceed further until these approvals were obtained. However, approval was obtained for a total of 96 units only. The plaintiffs contended below that the contract was modified by oral agreement of the parties, with the result that the contract remained in full force and effect except for the modified portion which reduced the number of required approvals from 150 units to 96. The defendants asserted that the contract terminated when approval for 150 units were not obtained, and that defendants thereafter agreed to close title on 96 units on condition that the balance of the purchase price be paid in cash. The trial court found that the parties had agreed to modify the contract so as to provide for the closing of title to 96 units, from which finding defendants do not appeal, but held that the plaintiffs’ evidence fell short of establishing by preponderant evidence that the defendant agreed to the payment of but 16%% in cash. The trial court, following its finding of an executed oral modification of the agreement, accordingly held that plaintiffs were entitled to judgment of specific performance upon payment in full on an all cash basis. The judgment provided that plaintiffs were to pay defendants in cash the sum of $119,000 (representing $1,500 per unit times 96 units less $25,000) for the property constituting Purchase Parcel No. 1. The issue to be resolved on this appeal is whether the evidence was sufficient to support the determination of the trial court that the parties had agreed not only to modify the contract by reducing the number of required approvals from 150 units to 96, but had also agreed to modify the provisions of the contract with relation to the terms of payment. Subdivision 1 of section 15-301 of the General Obligations Law states: "A written agreement or other written instrument which contains a provision to the effect that it cannot be changed orally, cannot be changed by an executory agreement unless such executory agreement is in writing and signed by the party against whom enforcement of the change is sought or by his agent.” This section does not prohibit executed oral modifications. "Those who make a contract, may unmake it. The clause which forbids a change, may be changed like any other. The prohibition of oral waiver, may itself be waived” (Beatty v Guggenheim Exploration Co., 225 NY 380, 387). The purpose of this section is to inhibit only executory oral agreements designed to modify written agreements which contain stipulations against oral changes (Alcon v Kinton Realty, 2 AD2d 454, 456). For this purpose, an executed agreement is one the object or terms of which are fully performed on both sides, or are performed at least on one side, and the execution must involve doing or suffering of something not required to be done or suffered by the terms of the writing, and such oral agreement takes effect as an alteration or modification as of the date it becomes fully executed (17A CJS, Contracts, § 377). The trial court determined that paragraph 3(c) of the contract was modified by the parties to reduce the required approvals from 150 dwelling units to 96. Approvals for 96 units were, in fact, issued and plaintiffs expended substantial moneys in reliance thereon. A letter written by defendant Schlesinger, which satisfies the requirement of a writing signed by the party against whom enforcement is sought, establishes defendants’ agreement that the project proceed upon the obtaining of approval for 96 rather than 150 units. Defendants have not appealed from this finding and the record amply supports the determination of the trial court that the modification, in this respect, had been executed. However, in addition to its finding of an executed oral modification of the quantity terms of the agreement, the trial court held that the payment terms of the contract (16%% cash) had been modified by the parties so as to require plaintiffs to [1030]*1030purchase the 96 units on an all cash basis. We are constrained to reverse this portion of the trial court’s decision. The fact that there was an executed modification of the quantity terms of the contract supported by a signed writing, does not satisfactorily establish an agreement to modify the payment terms as well in the face of the requirements of the Statute of Frauds. The only evidence in the record to substantiate the decision of the trial court that the parties had agreed to a modification of the payment terms of the contract to provide for all cash consists of oral testimony. Schlesinger’s letter to the plaintiffs in which he indicated that he had submitted plans for only 48 additional units (in addition to the 48 units which had previously been approved), makes no mention of any agreement that the payment terms of the contract had been modified to provide for payment of all cash.

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Related

Rose v. Spa Realty Associates
60 A.D.2d 937 (Appellate Division of the Supreme Court of New York, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
54 A.D.2d 1028, 388 N.Y.S.2d 184, 1976 N.Y. App. Div. LEXIS 14991, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-v-spa-realty-associates-nyappdiv-1976.