Mayol v. Weiner Companies, Ltd.
Appellate Court of Illinois, Fourth District
425 N.E.2d 45 (1981)
Mayol (plaintiff) signed a contract to buy real estate from Somers (defendant), with Weiner Companies (defendant) acting as Somers's sales agent; the contract stated possession was 'subject to tenant's rights.' Only after signing and receiving the tenant's lease did Mayol learn the tenant held an option to purchase the property, and he refused to close, suing for the return of his $1,000 escrow deposit. Because the term was ambiguous, the trial court considered extrinsic evidence and found Mayol had agreed to take the property subject to all the tenant's lease rights, including the purchase option, and awarded Somers the $1,000 as damages.
Whether it is appropriate for a court to award a favorable interpretation of an ambiguous contract term to the party less at fault for the resulting misunderstanding.