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Property Law Keyed to Cribbet
Niernberg v. Feld
Facts
The Defendants owned land, which they agreed to sell to Plaintiffs under a “Receipt and Option”, which provided for a $1,500 deposit and the remaining balance was to be paid in cash and secured by deed of trust. Under the agreement, the Defendants were to provide merchantible title by May 1, and the Plaintiffs would secure the financing before May 1, and if any party failed, then any money paid would be held as liquidated damages. After this “Receipt and Option,” but prior to May 1, Plaintiffs desired to back out of the deal and a meeting was held between the two husbands and in the presence of the Plaintiffs’ attorney. It was orally agreed at the conference that if the Defendants sell the house to someone else for the same or greater price than agreed to by the Plaintiffs, then the deposit would be returned, but that if the Defendants had to sell for less, the deposit would be applied to the difference and any remainder would go to the Plaintiffs. The Defendants then sold the property to another for greater than what the Plaintiffs had agreed to pay and thereafter refused to return the deposit. Plaintiffs sued for the amount of the deposit. The trial court, by jury, found for Plaintiffs and Defendants appealed.
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