This section contains the nature of the case and procedural background.

An apartment building was owned by the Martinique, a New Jersey corporation. That corporation entered into a five-year lease with D for a 1.5 room apartment. The gross rental with security deposit was $8,450 with rent payable at $130 per month. Hull (D) gave a check for the entire balance due in advance. A few months later D exchanged that apartment for a larger one, and that D would make up the difference of $20 per month in annual installments of $240 per year. A new lease was executed, but it ignored the terms of the first lease and did not account for the prior payment of rent in advance. In December of 1957, the complex was sold to Cambrian Estates, Inc. and Martinique took back a leasehold interest and eventually that interest was sold to P, a separate and distinct corporation. D did not record their leasehold interest until July 16, 1958. D eventually got a notice for rent due and refused to tender payment as he had paid in advance. P sued D, and d asserted the defense of payment. D was granted a motion for summary judgment. P appealed.

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