Illinois Supreme Court
642 N.E.2d 128 (1994)
In 1977, Daniels (plaintiff) contracted with Jacula and Anderson (defendants) to purchase land. The sale included a right of first refusal in a contiguous plot, such that Daniels would be offered the chance to buy the land for whatever price a prospective buyer was willing to pay for it. The contract of sale was not recorded, and the deed recording this sale did not mention the right of first refusal. In 1985, Zografos (defendant) contracted with Jacula and Anderson to buy the contiguous plot for $60,000. Zografos put down $10,000 initially and provided a note for the balance. Before June 1986, Zografos paid an additional $30,000 toward the purchase price. In June 1986, Zografos learned of Daniels’s right of first refusal for Daniels’s wife. In August 1986, Zografos paid off the remaining $20,000 on the note. Daniels sued to enforce his right of first refusal. The trial court ruled that Zografos could not be considered a bona fide purchaser because he knew of Daniels’s right of first refusal at the time he took title to the land; that is, when he made his last payment to Jacula and Anderson. The trial court ordered that Zografos convey the land to Daniels, and that Daniels pay to Zografos $60,000, plus $11,000 on property taxes that Zografos had paid on the land. The appellate court affirmed, and Zografos appealed.
Rule of Law
Holding and Reasoning (Freeman, J.)
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