Brown v. Friedberg
Brown v. Friedberg
Opinion of the Court
delivered the opinion of the court.
Morris Friedberg entered into a written contract with Lydia Brown for the purchase of a lot in Newport News for $14,150, of which $100 was paid in cash and the balance of the purchase price was to be paid within thirty days, or as soon as the vendor should furnish “a perfect title and a deed with covenants of general warrantyand then the contract concluded with this clause: “Should either of the parties to this agreement fail to comply with the terms thereof, then, the party so failing, hereby agrees to pay to the other or one complying with said terms the sum of. $500 as liquidated damages for the breach of this agreement.” On the same date and before that contract had been signed, the vendor had executed her receipt for the $100 in which the same contract was substantially- embodied, except that there was no reference to the $500. The reason for the stipulation as to the $500 appears to
The vendor having refused to convey the property, at the same time expressing her willingness to pay the $500, the vendee brought his suit for specific performance, and the court having decreed in his favor, the vendor appealed.
Affirmed.
Reference
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- Syllabus
- 1. Specific Performance.—Contract Containing Provision for Liquidated Damages or Penalty for Breach.—A court of equity may decree specific performance of a contract for the sale and conveyance of real estate, which also requires the payment of a sum of money, whether by way of penalty or damages, to secure the performance of such contract; but if the contract is in the alternative, and provides for the performance of either one of two things—that is, where the vendor is given the right either to make the conveyance or to pay a stipulated sum of money in lieu thereof—then equity will not decree specific performance of the contract to convey. 2. Specific Performance.—Contract Containing Provision for Liquidated Damages or Penalty for Breach.—A contract for the sale of land provided for the payment of $500 as liquidated damages for the breach thereof by either party. On- the same date, and before the contract had been signed, the vendor had executed her receipt for $100, part payment of the purchase money, in which the same contract was substantially embodied, except that there was no. reference to the $500 as liquidated damages.- The stipulation as to this $500 was embodied in the contract because the vendor feared that the small cash payment was not sufficient to make it to the interest of the vendee to comply with the contract. Held: That the provision- as to the $500 as liquidated damages was inserted, not as a substitute for the performance of the contract of purchase and sale, but its purpose was to induce the prompt performance of the contract. It was not intended by this clause to give either of the parties the option of abandoning the contract and liquidating the damages therefor.