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BMH Realty Ltd. v. 399 East 72nd Street Owners, Inc.

Citations: 221 A.D.2d 165; 633 N.Y.S.2d 141; 1995 N.Y. App. Div. LEXIS 10702

Court: Appellate Division of the Supreme Court of the State of New York; November 1, 1995; New York; State Appellate Court

Narrative Opinion Summary

The Supreme Court of New York County, under Judge Harold Tompkins, issued an order on January 11, 1995, granting the defendant's motion to dismiss the plaintiff's complaint, with costs awarded to the defendant. The court found no merit in the plaintiff's argument that the correspondence between the parties constituted a binding agreement. The court noted that the documents clearly indicated that the parties did not intend to be bound until a formal agreement was executed, referencing the case Brause v Goldman as supporting precedent. Additionally, the defendant was not obligated to make a good faith effort to prepare and deliver a formal written agreement, as established in Bernstein v Felske. The decision was affirmed unanimously by Justices Ellerin, Wallach, Nardelli, and Williams.

Legal Issues Addressed

Enforceability of Preliminary Agreements

Application: The court determined that the correspondence between the parties did not constitute a binding agreement because the documents indicated an intent not to be bound until a formal agreement was executed.

Reasoning: The court found no merit in the plaintiff's argument that the correspondence between the parties constituted a binding agreement.

Obligation of Good Faith in Contract Preparation

Application: The court held that the defendant was not required to make a good faith effort to prepare and deliver a formal written agreement, aligning with the precedent set in Bernstein v Felske.

Reasoning: Additionally, the defendant was not obligated to make a good faith effort to prepare and deliver a formal written agreement, as established in Bernstein v Felske.

Requirement of Formal Execution for Contractual Obligations

Application: The court concluded that the parties were not bound until a formal agreement was executed, referencing precedent from Brause v Goldman to support the decision.

Reasoning: The court noted that the documents clearly indicated that the parties did not intend to be bound until a formal agreement was executed, referencing the case Brause v Goldman as supporting precedent.