Reed v. Hassell
Superior Court of Delaware
340 A.2d 157 (1975)
Thomas and Sally Reed (plaintiffs) agreed to buy two lots from Andrew and Loretta Hassell (defendants). The sale contract put the risk of any easements visible on inspection onto the Reeds. The sale later closed with a warranty deed guaranteeing clear title. After clearing brush, the Reeds discovered a road encroaching on 25 percent of one lot, making it hard to develop. The Hassells had not known about the encroachment. The Reeds sued for breach of the warranty deed's guarantee of clear title, and the Hassells countered that the sale contract had already put that risk on the Reeds.
Whether, under the merger-by-deed rule, a deed's terms govern over conflicting terms in the prior sale contract because the two documents are treated as merged.