Kalmans v. Powles

Respondents instituted this action to recover $500 paid by them as earnest money upon the purchase of certain real estate. They alleged, and introduced testimony tending to prove, that three distinct misrepresentations were made to induce them to pay the money and accept an earnest money receipt in the nature of a preliminary contract for the purchase of the property: first, that the property to be purchased was free and clear of all liens and incumbrances, when, in fact, it was subject to a mortgage for $7,500, bearing-interest at the rate of six and one-half per cent per annum before…