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Dixon v. Salvation Army
California Court of Appeal
142 Cal. App. 3d 463 (1983)
The Salvation Army (defendant) entered into an agreement to sell two parcels of land in downtown San Diego to Dixon (plaintiff). There were three buildings on those two parcels, two warehouses and an office building. Under the agreement, Dixon was entitled to allocate the purchase price between the two parcels, and the escrow period was set for one year. Dixon allocated $200,000 of the purchase price, out of $900,000, to the parcel with both the office building and a warehouse building. Approximately eight months into the escrow period, the office building caught on fire and was destroyed. Dixon and the Salvation Army negotiated over a new price but did not reach an agreement. Dixon filed a lawsuit against the Salvation Army, seeking specific performance of the agreement at an abated price. The trial court granted the request, and the Salvation Army appealed.
Rule of Law
Holding and Reasoning (Cologne, J.)
Dissent (Work, J.)
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