McMurry Oil Co. v. Deucalion Research, Inc.

URBIGKIT, Justice.

McMurry Oil Company and associates (Sellers) entered into a written agreement to sell a collection of oil and gas properties to Deucalion Research, Inc. (Buyer). When the sale fell through, cross-suits followed seeking possession of $60,000 earnest money in addition to contesting fault in the sale agreement termination. The trial court found retention of the $50,000 an unjustified penalty and granted the return of the earnest money to the prospective Buyer while determining that the Sellers had not been in default. We reverse the liquidated damage decision and otherwise…