Knott v. Racicot

A property owner and a tenant signed an option contract, executed under seal, granting the tenant a right of first refusal on the property. Knott (plaintiff), who wanted to buy the property, sued to invalidate that right of first refusal, arguing the agreement between the owner and tenant lacked consideration. The lower court held that a sealed contract needs no consideration, and the appeals court affirmed. Knott appealed.