Mosher

Mayacamas Corporation appeals from a summary judgment in favor of plaintiff Loren R. Mosher in a breach of contract action.

Appellant contends that the trial court erred in precluding it from avoiding, rescinding or reforming its contractual obligations in light of a precipitous decline, subsequent to sale, in the value of the real property which was the subject of the contract. For reasons we shall discuss, we find no error and affirm the judgment.

Facts

In 1976, plaintiff and his brother, Roger L. Mosher, invested in a townhouse at Lake Tahoe. Each held an undivided one-half interest. Roger Mosher thereafter managed the investment, organizing several trades which resulted in the brothers’ ownership of three Lake Tahoe properties by the time of the transaction at issue in this case.

In 1982, Roger Mosher proposed that appellant Mayacamas Corporation (an entity formed to engage in investments for Roger Mosher and his family) buy out plaintiff’s interest in the properties. After a period of negotiation, plaintiff accepted appellant’s proposed price of $502,750 (less assumed debt of $312,750, leaving a net due to plaintiff of $190,000 with $50,000 down and the remainder…