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Contracts Keyed to Templin
Keene v. Harling
Citation:
61 Cal. 2d 318, 392 P.2d 273, 38 Cal. Rptr. 513 (1964)Facts
Walter Keene and his wife owned and operated a coin machine business which they sold to defendant Harling on September 1, 1955, through a conditional sales agreement. The sale included the business route, equipment, and a covenant not to compete for five years. Harling agreed to pay $50,000 for the business, with $10,000 paid at execution and the remainder in monthly installments. Harling later partnered with Blum, who also became liable for the payments. The business included various legal coin-operated machines (phonographs, cigarette dispensers, legal pinball machines, scales, candy and popcorn dispensers), as well as illegal “bingo-type” pinball machines worth $4,600. When the defendants defaulted on the note with $32,500 still owing, the Keenes sued. The defendants claimed the entire contract was void due to the inclusion of illegal machines.
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