Commercial Law Keyed to Lopucki
Palmer v. Fox
Louis G. Palmer & Company and Defendant entered into a contract for the sale of a certain lot. The purchase price was $1,650.00 of which $247.50 was to be paid at the execution thereof and the balance to be paid in monthly installments of $16.50 each and the entire amount to be paid in five years. The defendant made the initial payment and also made monthly payments. The Louis G. Palmer & Company assigned its interest to Plaintiff and she commenced an action to recover the balance of the purchase price due in the amount of $709.02 plus interest. The covenant in the contract stated that the vendor agrees at its own expense to furnish cement sidewalks except one and furnish water mains and sewers. The covenant further provides that if the water and sewer are put in by the city, the assessment against the property shall be paid by the vendor. The contract also provided that upon receiving payment of principal and interest in full the vendor would execute and deliver to the vendee a warranty deed of the premises, subject to certain covenants and restrictions. Defendant claimed that the vendor and its assignees (Plaintiff) failed to perform covenants in the contract to make stated improvements in the subdivision and in failing to gravel the streets. Defendant also claimed that the Plaintiff could not recover because of the failure to tender a deed to the premises before commencement of the action. Plaintiff contends that the covenant by Defendant to pay is independent of Plaintiff’s covenant to furnish improvements. Whether the covenants are independent or dependent is irrelevant, in that Plaintiff’s failure to gravel the streets is not a material breach. The trial court found for the Plaintiff in the amount of $709.02 and $146.89 interest. Defendant appeals.
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