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Kramer v. Mobley

Court of Appeals of Kentucky
216 S.W.2d 930 (1949)


Mobley (plaintiff) entered into an agreement to purchase real property from Kramer (defendant). After executing the agreement, Mobley learned of an outstanding lien against the property. Kramer asserted that he had informed the real estate broker in advance that the lien was in dispute and that he expected the purchaser to accept title subject to the lien with a provision that Kramer would indemnify the purchaser against any loss resulting from the lien. Kramer offered to tender a check to Mobley in excess of the amount of the lien and to institute legal proceedings to resolve the dispute over the validity of the lien. Mobley indicated that he found Kramer’s offer acceptable, but changed his mind before the agreement was consummated. Kramer later offered a warranty deed to Mobley and again offered a check in excess of the lien amount and a promise to take legal action to clear title. Mobley refused and Kramer returned Mobley’s down payment. Mobley filed suit alleging breach of contract and seeking damages for the difference between the market value of the property and the contract price, along with expenses including title examination fees. The trial court concluded that Kramer had breached the purchase contract and awarded damages to Mobley. Kramer appealed.

Rule of Law


Holding and Reasoning (Rees, J.)

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