Sharp v. Holthusen

Facts

The Plaintiffs, Ray D. and Freda Sharp (the "Plaintiffs"), entered into an agreement to sell their home to the Defendants, Earnest D. and Donna M. Holthusen (the "Defendants") on October 11, 1976. The Defendants were obligated to assume the Plaintiffs' Veterans Administration loan (the "VA loan"), and discharge it by October 11, 1977. After obtaining possession of the property on October 11, 1976, the Defendants put $7,000 in cash down and made monthly payments equaling $1,081. The Defendants failed to obtain financing to pay off the VA loan by October 11, 1977. On October 21, 1977, the Defendants were sent a notice of default. The Defendants did not cure the default within 45 days, which was specified in the contract. Shortly thereafter, the parties began negotiations to compromise the claims they had against one another, and in January 1978, the Defendants obtained the necessary financing. The closing date was set for January 16, 1978, but a water purity test was a prerequisite to the closing. The test showed that the water was contaminated, so the closing could not proceed. To remedy this, the Defendants embarked on digging a new well. The well was completed by March 1978 and the financing closed shortly thereafter. Payment of the loan was then tendered to the escrow agent. The escrow agent, at the direction of the Plaintiffs, however, refused the payment. The Plaintiffs wanted the Defendants to pay all attorney fees and release the Plaintiffs from all claims related to the contamination in the wwll. The Defendants paid all the attorneys fees, but refused to release the Plaintiffs from claims relating to the well. The parties could not settle their dispute, and the Plaintiffs filed suit for "forfeiture of the contract and for repossession of the real property."