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Contracts Keyed to Frier
American Mechanical Corp. v. Union Mach. Co. of Lynn, Inc.
Citation:
21 Mass. App. Ct. 97, 485 N.E.2d 680 (1985)Facts
Plaintiff contracted with Defendant to sell its real estate and business equipment for $135,000. At the time of the contract, Defendant had knowledge that Plaintiff was in financial difficulty; that it was in arrears on its mortgage payments to Saugus Bank & Trust Company (Saugus); and that Saugus was urging Plaintiff to sell its property and equipment. Defendant issued a $5,000 check to Plaintiff as a down payment to be held in escrow until closing on the property. Thereafter, Defendant backed out of the contract and Saugus took possession of the property. After Plaintiff was unable to find another purchaser for the real estate and equipment, Saugus sold the equipment for $35,000. Saugus foreclosed on the real estate and purchased it for $55,000. Plaintiff sued Defendant for breach of contract. After trial, the court held that although there was a breach of contract, Plaintiff had not proved the right to recover damages, beyond nominal damages. Plaintiff appealed.
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Topic Resources
Topic Outline
DamagesTopic Refresher Course
Intro to Damages and Expectation Damages