Zimmermann v. Thompson

Plaintiff is the seller, defendant the buyer of certain real estate. They entered into a contract whereby the buyer agreed to pay $500 down and thereafter a balance of $43,000. The contract recited:

“Should the undersigned buyer fail to carry out this agreement, all money paid hereunder shall, at the option of the seller, be forfeited as liquidated damages and shall be paid to or retained by the seller, subject to deduction of broker’s commission and disbursements, if any.”

The buyer paid nothing on the balance of the purchase price. The seller sold the property to a third party, retained the…