Patterson v. Meyerhofer

204 N.Y. 96, 97 N.E. 472 (1912)

Facts

P agreed to sell to D several parcels of land for $23,000. P did not own the property but intended to buy them in foreclosure. D knew that P was not the owner and was aware of how P was going to acquire title. Before the foreclosure sale, D informed P that she would not buy the properties from P but bid for them herself at foreclosure. D was successful and bought the properties for $5,595 each which was $620 less than the price she was obligated to pay P for all of them. During the auction, D continually outbid P. P sued D for the contract for the four homes and a fifth home under an alleged parol agreement. The judge ruled for D claiming that there was no relation of confidence between the vendor and vendee with each party being free to act for his own interest, restricted only by the stipulations of the contract. P appealed.