Kelley v. Rouse

As we shall point out, the bare option, here, lacking consideration, could not prevent the option givers’ withdrawal of the option. In view of the court’s find-, ing that the situation alerted the purchaser of the option to ascertain its true nature, the purchaser could not effectively contend that it relied upon the recitals of consideration in the option, and that therefore the option givers were estopped from showing an absence of consideration.

An attempt to enforce an option for 31% acres of land in Santa Clara County created this litigation. The history of the option begins with its…