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Danann Realty Corp. v. Harris

Court of Appeals of New York
157 N.E.2d 597 (N.Y. 1959)


Facts

The plaintiff contracted to buy a lease of a building from the defendants. During negotiations, the defendants made certain oral representations regarding the building’s operating expenses and the profit the plaintiff could expect to make from controlling the building. The representations turned out to be false. However, the contract contained the following disclaimer: “The Seller has not made and does not make any representations as to the physical condition, rents, leases, expenses, operation or any other matter or thing affecting or relating to the aforesaid premises . . . and the Purchaser hereby expressly acknowledges that no such representations have been made, and the Purchaser further acknowledges that it has inspected the premises and agrees to take the premises ‘as is’ . . . . It is understood and agreed that . . . neither party [is] relying upon any statement or representation, not embodied in this contract, made by the other.” The plaintiff brought suit, seeking damages for fraud based upon the oral representations of the defendants. The defendants filed a motion to dismiss. The trial court dismissed the complaint. The appellate court reversed. The defendants appealed.

Rule of Law

Issue

Holding and Reasoning (Burke, J.)

Dissent (Fuld, J.)

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