The New York State Court of Appeals decided two cases recently regarding consideration in option contracts. The two cases, which involved many of the same parties, hinged on the granting of an option in exchange for consideration.<\/p>\n
In both cases, the court reiterated principles of contract law. The court ruled that when the cases involve sophisticated parties represented by counsel, the court will not examine the sufficiency of the consideration and will not permit extrinsic evidence to determine what \u201cother good and valuable consideration\u201d might be. If a party wishes to condition its contractual obligations on a particular performance by the other party, it should make that condition part of the written agreement.<\/p>\n
In the case of Schron v. Troutman Saunders<\/em>, Rubin Schron agreed to help fund an acquisition by SVCare, a company that operates nursing homes. Schron’s company agreed to lend $100 million to SVCare to help fund the (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The New York State Court of Appeals decided two cases recently regarding consideration in option contracts. The two cases, which involved many of the same parties, hinged on the granting of an option in exchange for consideration. In both cases,…<\/span><\/p>\n