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Contracts Keyed to Murray
Jackson v. Richard’s 5 & 10, Inc.
Facts
Jackson (Plaintiff) entered into an oral agreement for the purchase of all the inventory, fixtures, and good will of two stores owned by Richards’ 5 & 10, Inc. (Defendant). In reliance on the oral agreement Plaintiff purchased the building in which one of the stores was housed. On January 30, 1975, both parties signed a written agreement, memorializing the previous oral agreement and setting February 18, 1975 as the date for final settlement. Plaintiff provided Defendant a certified check for $2,000 and a personal check for $3,000, which was returned for “non-sufficient funds” as down payment. Plaintiff failed to appear when the time for settlement came and Defendant “secured” the premises of both stores in an effort to preclude Plaintiff form further use, possession, or control. The next day, Plaintiff regained entrance and resumed operations. On February 28, 1975, the parties signed another agreement concerning the purchase of the stores, setting the final settlement date as March 31, 1975. The down payment required for the second agreement was $2,000 in cash and a deed to Plaintiff’s house executed by him in favor of Defendant, to be recorded only in the event of default. The agreement also required that Plaintiff perform certain obligations by March 3, 1975, and that Plaintiff show evidence of performance to Defendant’s attorney. Plaintiff never furnished evidence of performance. Furthermore, rent for one of the stores was not paid for the months of February or March. On March 21, 1975, Defendant seized the two stores, removed all the merchandise from one store and placed it in the other store, and subsequently sold a large quantity of the merchandise without notice of sale to Plaintiff. Defendant also recorded the deed to Plaintiff’s house. Plaintiff filed a petition for an injunction, seeking to restrain the transfer or encumbrance of Plaintiff’s home. The trial court granted a preliminary injunction, but was ordered dissolved by decree nisi, which followed a one-day trial. The decree also denied Plaintiff the relief he sought and awarded Defendant $10,000 in damages. The court of appeals affirmed. Plaintiff appealed.
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