Lyall v. DeYoung

—The principal issue in this case involves the effect to be given to an express warranty of water quality contained in a real estate earnest money agreement.

Roger and Arlene DeYoung (buyers) and Mary Lyall (seller) signed a real estate purchase and sale agreement (earnest money) for the sale of Lyall's 70-year-old house on 2.9 acres. The buyers viewed the property once before signing the earnest money and twice more before the transaction closed 6V2 weeks later on July 7, 1981. The price was $58,000 with $30,000 paid at closing. Paragraph 5 of the earnest money is a warranty which states:

5.…