Sale of Property Fails for Lack of Consideration
The Arkansas Court of Appeals reversed specific performance of sale of property in Youree v. Eshaghoff, No. 06-883 (5/9/07).
The Yourees entered into a contract to sell property to the Eshaghoffs for a total of $1.05 million. The contract provided the Yourees had one year to surrender the property. If they did not, they would lease the property for $12,000 per month until surrender. The parties executed addenda that reduced the surrender time to 6 months and required the Eshaghoffs to lease the property for $18,000 per month for no more than 3 months if they failed to meet the surrender deadline.
The trial court found the addenda were enforceable and directed sale of the property. The court of appeals reversed, finding that the addenda were unenforceable because they provided no additional consideration . These addenda did not require the Yourees to do anything more than what they were already required to do.
