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Property Keyed to Rabin
Covington v. Robinson
Facts
Covington and Hurt, Jr. (Plaintiffs) and Robinson (Defendant) contracted for Plaintiffs to purchase 1,500 acres of land for $2,010,675, requiring the Plaintiffs to obtain financing for seventy-five percent of the purchase price or Plaintiffs would have to forfeit their $100,000 deposit. Plaintiffs only obtained 73.98 percent of the purchase price. Defendant lowered the purchase price so that the current finance would equal seventy-five percent of the new purchase price and Plaintiffs would not need additional financing. Plaintiffs still refused to close, therefore, Defendant held the Plaintiffs in breach and deemed the deposit forfeited. A few months later, Defendant sold the property for two million dollars. Plaintiffs sued to recover the entire deposit or, at minimum, the difference between their contract price and the price Defendant actually received from the second buyer.
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