Joseph Martin, Jr. Delicatessen v. Schumacher 436 M.Y.S.2d 247, 417 N.E.2d 541 (N.Y. 1981) Schumacher leased property to Martin for his store. The lease was for $500 a month for the first year, and then a bit more each year until $650 the last year. o The contract stated that the Tenant may renew the lease for an additional 5 years at annual rentals to be agreed upon. When 5 years was up, Schumacher demanded $900 a month to renew the lease, when the fair market value was assessed at only $545. Martin sued for specific performance. o In this case, specific performance was a reasonable remedy. Schumacher got a court order to have Martin evicted. Trial Court found that the contract for future rental was unenforceable as a matter of law, because of uncertainty. Martin consolidated the eviction matter with the contract matter and appealed. Appellate Court reversed. o The Appellate Court said that it would not be unreasonable to hire an appraiser and calculate a reasonable rent. New York Supreme Court reversed the Appellate and reinstated the Trial Court's decision. o New York Supreme Court found that the contract was poorly written in that it provided no information on how future rents were to be calculated, or what the process would be if there was disagreement. o Courts have historically declined to enforce agreements to agree. Courts have left the consideration in contracts to the parties to the contract. If the Court enforced this contract, they would have to define the consideration, and they never do that. Btw, UCC § 2-305 does not follow the common law rule of not enforcing agreement to agree (Joseph Martin, Jr. Project Wonderful - Your ad here, right now, for as low as $0 Delicatessen v. Schumacher was not under the UCC since it wasn't an offer to sell goods).
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