56 case Stambovsky v. Ackley Jeffrey Stambovsky agreed to buy Helen Ackley\'s ho

Question

56 case Stambovsky v. Ackley Jeffrey Stambovsky agreed to buy Helen Ackley's house in Nyack, New York, for $650,000. Stambovsky signed a contract and made a $32,500 down payment. Before completing the deal, he learned that in several newspaper articles Ackley had publicized the house as being haunted. Ackley had also permitted the house to be featured in a walking tour of the neighborhood as "a riverfront Victorian, with ghost." Stambovsky refused to go through with the deal and sued to rescind. Who won? 57

Explanation / Answer

This case was first heard by the State Supreme Court and ruled the decision in favour of the Ackleys. The reason was that New York is giverned by the Doctrine of Caveat Emptor i.e. "Buyer Beware". As per this doctrine, it is the responsibility of the buyer to ensure that the house is in okay condition with respect to all parametrers.

The higher court although later on allowed Stambovsky to claim his down payment back from Ackleys.

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