Cook v. Brown

This appeal is concerned with the proper construction of a liquidated damages provision in a land sale contract. A short rendition of the facts and history of the case will be helpful to an understanding of the present proceeding.

In March 1979 Brown agreed to purchase a small parcel of land from Cook for $123,000. Brown's wife, a licensed real estate agent, prepared the sales contract which the parties signed. As part of the contract, Brown gave Cook $10,000 as earnest money. The contract authorized Cook to retain this money as liquidated damages in the event Brown breached the contract. The…