Case Citation
Legal Case Name

Mattei v. Hopper Case Brief

California Supreme Court1958Docket #423235
51 Cal. 2d 119 330 P.2d 625 1958 Cal. LEXIS 213 Contracts Property

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Case Brief Summary & Legal Analysis

General Brief
3 min read

tl;dr: A real estate contract conditioned on the buyer obtaining “satisfactory” leases was held enforceable. The court found the buyer’s promise was not illusory because it was constrained by an implied duty of good faith, which provided sufficient consideration for the seller’s promise.

Legal Significance: Establishes that a contractual promise conditioned on the promisor’s subjective satisfaction is not illusory if the promisor is bound by an implied duty of good faith. This duty constitutes valid consideration, creating mutuality of obligation and an enforceable contract.

Mattei v. Hopper Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Plaintiff Mattei, a real estate developer, executed a deposit receipt to purchase defendant Hopper’s land, which was adjacent to a tract where Mattei planned to build a shopping center. The total purchase price was $57,500, of which Mattei deposited $1,000. The agreement gave Mattei 120 days to consummate the purchase and included a clause stating the contract was “Subject to Coldwell Banker & Company obtaining leases satisfactory to the purchaser.” This provision was intended to allow Mattei to secure tenants for the proposed shopping center before being irrevocably bound to the land purchase. Before the 120-day period expired, and while Mattei was in the process of securing leases, Hopper repudiated the agreement. Mattei subsequently informed Hopper that satisfactory leases had been obtained and he was prepared to pay the balance, but Hopper refused to convey the property. The trial court found the agreement illusory and lacking mutuality because Mattei’s performance was dependent on his personal satisfaction, and entered judgment for Hopper.

Court Holding & Legal Precedent

Issue: Is a contractual promise to perform, which is conditioned on the promisor’s subjective satisfaction regarding a matter of judgment, an illusory promise that fails for lack of consideration and mutuality of obligation?

No. The contract was not illusory or lacking in mutuality of obligation. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur

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IRAC Legal Analysis

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Legal Issue

Is a contractual promise to perform, which is conditioned on the promisor’s subjective satisfaction regarding a matter of judgment, an illusory promise that fails for lack of consideration and mutuality of obligation?

Conclusion

This case is a key precedent in contract law, establishing that a Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in v

Legal Rule

A promise conditional on the promisor's satisfaction is not illusory. Where the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in c

Legal Analysis

The California Supreme Court reasoned that the central issue was whether the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mo

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Flash Summary

  • A contract clause conditioning performance on a party’s satisfaction is not
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fug

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