Robeson-Marion Development Co. v. Powers Co.

Brailsford, Justice.

Respondent corporation contracted to buy within ninety days certain property which the appellants agreed to con vey free of liens and encumbrances. One day prior to the day set for closing, which coincided with the expiration of the term, the buyer informed the sellers that it would be unable to comply for lack of funds. The sellers brought this action seeking a declaration of their right to liquidated damages of $17,500.00, the earnest money originally deposited in escrow. The buyer counterclaimed for a return of its deposit on the ground that the sellers would have been…