53 A.D.2d 714 | N.Y. App. Div. | 1976
Appeal from a judgment of the Supreme Court in favor of defendants, entered March 26, 1975 in Tompkins County, upon a decision of the court at a Trial Term, without a jury. In July, 1967, the defendant-owners sold to the plaintiffs certain land in the City of Ithaca, and, pursuant to the agreement, it was further provided with respect to the property presently in dispute that if defendants receive a bona fide written offer for the purchase of this property during a period of five years, they would offer the property to plaintiffs on the same terms and conditions. In April, 1968, defendant-owners accepted an offer from defendant Ithaca College to purchase the property in question for $47,000. However, when the college learned of the agreement with plaintiffs, the offer of sale and acceptance were withdrawn by mutual consent. With the agreement with plaintiffs in mind, the owners and the college entered into a lease of the premises for a term running from July 1, 1968 to June 30, 1973. The term of the lease was thus to run until after the plaintiffs’ right of first refusal expired. Ithaca College was further given, in consideration of the sum of $10,000 paid by them upon execution of the lease, an exclusive option to purchase the premises between January 1, 1973 and the end of the lease for $47,000, against which the $10,000 payment would be credited. The lease called for rental of $1,000 per year and contained a covenant that the owners would