MAHONEY V. TINGLEY 529 P.2d 1068 (1975) CASE BRIEF

MAHONEY V. TINGLEY

529 P.2d 1068 (1975)

NATURE OF THE CASE: Tingley (D) sought review of the decision that reversed the trial court's grant of summary judgment to D, in P's action for damages for breach of an earnest money agreement.

FACTS: P and D entered into an earnest money agreement where P agreed to sell residential property to D. The price was eventually reduced to $20,250. D deposited $200 as earnest money. The agreement contained the following clause: If title is so insurable and purchaser fails or refuses to complete purchase, the earnest money shall be forfeited as liquidated damages unless seller elects to enforce this agreement. D canceled the agreement. P sold the property to a third party for $19,000. P sued for damages of $3,141.44. The trial court ruled that the liquidated damages clause was valid and enforceable and that P was entitled to the $200 and no more. D got the summary judgment. The court of appeals reversed. D appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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