SPECIFIC PERFORMANCE - EFFECT OF A V ENDOR's BREACH OF A COLLATERAL AGREEMENT

Authors

Michigan Law Review, University of Michigan Law School

Abstract

The vendor sought specific performance of a land contract containing the following clause, "On default by the buyer, the binder shall be retained by the seller, but if the seller shall be unable to make conveyance as above stipulated then the binder shall be returned and all obligations shall cease." It was agreed orally by the parties that the vendor would help the vendee finance the purchase. The vendor did provide the vendee with an application for a mortgage from a bank, but the bank did not promise to take the mortgage. Held, specific performance should be refused, both because of the quoted clause, which provided for liquidated damages, and because the plaintiff breached the collateral agreement to help finance the purchase. Gilman v. Murphy, (R. I. 1941) 21 A. (2d) 272.

Recommended Citation

Michigan Law Review, SPECIFIC PERFORMANCE - EFFECT OF A V ENDOR's BREACH OF A COLLATERAL AGREEMENT, 40 Mich. L. Rev. 615 (1942).
Available at: https://repository.law.umich.edu/mlr/vol40/iss4/20