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Contracts Keyed to Scott
Wolf v. Marlton Corp.
Facts
The Wolfs (Plaintiffs) contracted to purchase a house that Marlton Corp. (Defendant) was to build in its residential development. Plaintiffs put down a deposit of $2,450, which Defendant was entitled to keep under the terms of the contract if Plaintiffs failed to make additional payments on the house. During construction, Plaintiffs ran into marital troubles and told their lawyer that they did not want to complete the sale. Accordingly, Plaintiffs’ lawyer told Martin Field of Defendant that if he did not agree to a settlement and let Plaintiffs out of the contract, Plaintiffs would resell the house “to a purchaser who would be undesirable in [Defendant’s] tract.” Field testified: “[the lawyer stated] that if we did not accept his offer it would be the sorriest move that I ever made in my building career. I accepted it as a threat, and I felt that at this point it was impossible to go ahead and continue with this thing.” As a result of this conversation with Plaintiffs’ lawyer, Defendant informed Plaintiffs that the sale would not be consummated on account of Plaintiffs’ material breach, and because of that breach, Defendant was retaining the down payment. Plaintiffs sued for breach of contract, claiming that they were always ready, willing, and able to perform under the contract. The trial court held that Defendant refused to perform and found in favor of Plaintiffs. Defendant appealed.
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