Danann Realty Corp. (Danann) (plaintiff) entered into a written contract with Harris and others (defendants) for the sale of a lease on a building held by the defendants. The contract stated that Danann agreed it had inspected the premises, was familiar with the condition, and was taking the premises “as is.” The contract also provided that the defendants were not making any representations about the condition, rents, expenses, operation, or any other matter affecting the premises, and Danann specifically agreed that no such representations had been made. The contract also stated that all understandings between the parties were merged into the written contract. Danann brought suit against the defendants, alleging that it was induced to enter into the contract because of oral misrepresentations that the defendants made about the operating expenses of the building and the profits that would result from the investment. The lower court granted a motion to dismiss the complaint. On appeal, the appellate division reversed. The defendants appealed.