1464-Eight, Ltd. & Millis Management Corp. v. Joppich

Joppich (plaintiff) bought an undeveloped residential lot from 1464-Eight, Ltd. and Millis Management Corp. (defendants) for $65,000. At closing the parties signed an option agreement letting the defendants buy the lot back if Joppich failed to start building a home within 18 months. The option recited a $10 option fee as paid and received. Joppich did not build in time, and the defendants tried to exercise the buy-back option. Joppich sued for a declaration that the option was invalid for lack of consideration because the $10 was never actually delivered. The trial court denied the defendants summary judgment, and the appellate court reversed.

Whether the failure to deliver the nominal consideration recited in an option contract is sufficient to prevent enforcement of the option.