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Store Properties v. Neal

California Court of Appeal
72 Cal.App.2d 112 (1945)


Facts

In 1944, John Neal and Clara Neal (defendants) offered to lease their property to Store Properties, Inc. (plaintiff), under a 99-year lease. The Neals put the terms of their offer into a written proposal. The terms included the rent payments that would be due on the property for the first 15, then 10, then 24, then remaining 50 years of the lease. One provision required the parties to sign a lease based upon the terms of the offer within 30 days of the accepted offer. Other provisions specified the deposit and escrow funds that Store Properties would pay after a lease was signed. Both the Neals and Samuel Genis, the president of Store Properties, signed the proposal. Store Properties paid a deposit of $5,000 and agreed to pay $30,000 toward improvements to the property. The parties did not execute a lease, and the Neals ultimately did not lease the property to Store Properties. Store Properties sued the Neals, claiming that the signed proposal was an enforceable contract that the Neals had breached. The Neals filed a motion to dismiss, which the trial court granted. Store Properties appealed.

Rule of Law

Issue

Holding and Reasoning (Moore, J.)

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