Caullett v. Stanley Stilwell & Sons, Inc.
New Jersey Superior Court, Appellate Division
170 A.2d 52 (1961)
Stanley Stillwell & Sons, Inc. (Stanley) (defendant) sold an acre of land to Caullett (plaintiff) for $4,000. The warranty deed to Caullett included a provision reserving Stanley’s right to be the contractor to build a home for Caullett on the property. The deed included this provision under “covenants running with the land.” When negotiations for building the home failed, Caullett sued to quiet title to the property. Caullett argued that no contract between the parties to construct a home ever existed. Stanley countered that the most important consideration in fixing the price of the property was the understanding that Stanley would act as the general contractor to build a home on the property. The trial court held that the home-building provision in the deed was unenforceable and found for Caullett. Stanley appealed. On appeal, Stanley argued that the provision was an ordinary property restriction. The trial court denied the landlord's motion to dismiss. The appellate division affirmed. The landlord appealed to the New York Court of Appeals.
Rule of Law
Holding and Reasoning (Freund, J.)
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