On February 28, 2024, the Second Department issued a decision in Keller-Wala v. Coello, 2024 NY Slip Op. 01004, holding that an agreement was not a binding contract because of a lack of consideration, explaining:
In July 2020, the plaintiffs, Ericka Keller-Wala and Brisa Builders Corp. (hereinafter Brisa Builders), commenced this action against the defendant for a judgment declaring that a written contract dated June 5, 2018, which was executed by Keller-Wala and the defendant, is null and void, and unenforceable. In the contract, the plaintiffs promised to pay certain developer fees and profit shares in various construction projects to the defendant and to transfer 10% ownership in Brisa Builders to him. The plaintiffs alleged, inter alia, that the contract lacked consideration.
. . .
To establish the existence of an enforceable agreement, there must be consideration, among other things. Consideration consists of either a benefit to the promisor or a detriment to the promisee. Under the contemporary definition of consideration, it is enough that something is promised, done, forborne or suffered by the party to whom the promise is made as consideration for the promise made to him or her.
The Supreme Court properly granted the plaintiffs’ motion for summary judgment on the complaint because they demonstrated, prima facie, that the contract fails for lack of consideration, and in opposition, the defendant failed to raise a triable issue of fact. The contract contains no express consideration, nor are there any mutual promises of the parties to it from which such consideration can be fairly inferred.
(Internal quotations and citations omitted).