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Contracts Keyed to Blum
DK Arena, Inc. v. EB Acquisitions I, LLC
Citation:
112 So. 3d 85 (2013)Facts
In July 2004, EB Acquisitions I, LLC entered into a written contract to purchase the Mangonia Park Jai Alai Fronton property from DK Arena, Inc. for $23 million. The contract required EB to place a $1 million deposit in escrow and provided for a 60-day due diligence period during which EB could inspect the property and terminate the contract with return of the deposit. The contract specified that any modifications must be in writing. The parties later executed a written amendment extending the due diligence period by 14 days to October 4, 2004. On that date, the parties met and allegedly made an oral agreement to further extend the due diligence period indefinitely while they negotiated a potential joint venture. When the development project faced opposition from local officials and King failed to attend a crucial town council meeting on October 26, the deal collapsed. DK Arena demanded the deposit, claiming the due diligence period had expired, while EB refused to release it, arguing that King had breached the agreement by failing to support the project and that the due diligence period had been orally extended.
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