David Wise v. Commissioner of Internal Revenue

CLARK, Circuit Judge.

Petitioner Wise owned adjoining parcels of property, 32 and 34 Clinton Avenue, Albany, New York, both of which were leased to one Fred E. Ziehm. The lease covering 34 Clinton Avenue contained an option to Ziehm to purchase both parcels for a stated sum. It also gave Wise an option to terminate the lease upon the payment to Ziehm of $25,-000. On February 2, 1952, Ziehm exercised his option to purchase both properties; but Wise took the position that he could rescind Ziehm’s option, even after it had been exercised, by tendering $25,000, which Ziehm, however, refused. Ziehm…