ln 1940 defendant leased his property to the plaintiff for ten years with an option to purchase for $25,000 at any time within the term of the lease. One month before the lease expired, the plaintiff gave defendant notice of his election to exercise the option. Defendant claimed that, subsequent to exercise of the option, a fair bid of $35,000 had been made by a third party and, therefore, he was not required to convey. In an action for specific performance, the trial court held that the subsequent bid was of no effect under the contract, and the plaintiff was entitled to the property. On appeal from an order granting a new trial, held, for plaintiff. In the absence of an unconscionable overreaching, the adequacy of consideration is determined at the time of the contract's inception. Therefore, evidence of 1950 property value, the competence of the bid, and the depreciation of money values is immaterial. Shell Oil Co. v. Kapler, (Minn. 1951) 50 N.W. (2d) 707.
Harry T. Baumann S. Ed.,
EQUITY-SPECIFIC PERFORMANCE-DECREASE IN MONEY VALUE SUBSEQUENT TO THE INCEPTION OF AN OPTION CONTRACT IS NOT HARDSHIP,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol51/iss1/12