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Mahoney v. Tingley
Supreme Court of Washington
529 P.2d 1068 (1975)
The plaintiff agreed to sell residential property to the defendants for $20,250. The parties entered an earnest money agreement, which contained a liquidated damages provision. The provision stated that, if the defendants failed to complete the purchase, the plaintiff could either elect to sue for specific performance or retain the earnest money as liquidated damages. The defendants deposited a total of $200 as earnest money. However, when the transaction was ready for closing, the defendants refused to complete it. The plaintiff eventually sold the property to another party for $19,000. The plaintiff then brought suit, seeking damages in the amount of $3,141.44, an amount greater than that provided for by the liquidated damages clause.
Rule of Law
Holding and Reasoning (Brachtenbach, J.)
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