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This section contains the nature of the case and procedural background.

Teitelbum (P) made a lease with Direct (D) to lease a store. Abe and Dorothy Fergang occupied the store under a lease expiring June 30, 1938. P was to take possession on July 1, 1938. The Fergangs refused to move out claiming an alleged oral agreement renewing their lease. The jury returned a verdict in favor of the Fergangs and D appealed, and verdict was reversed, and a new trial was ordered. The Fergangs defaulted and vacated in January 1939. P sued D for failure to deliver possession.

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