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Contracts Keyed to Murray
Highland Inns Corp. v. American Landmark Corp.
Facts
American Landmark Corp. (Defendant) entered into a contract to purchase real estate from Highland Inns Corp. (Plaintiff). The contract stated that if Defendant had not obtained a mortgage commitment in a certain amount by a set deadline, the contract would be void. The contract also required Defendant to deposit $10,000 in escrow as earnest money, to be applied to the purchase price upon closing or paid to Plaintiff as liquidated damages if Defendant failed to fulfill its obligations under the contract. Defendant was unable to obtain a mortgage commitment by the deadline, and Plaintiff sued for the escrowed $10,000. The lower court awarded the $10,000 to Plaintiff. Defendant appealed.
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