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Ross v. Bumstead

Arizona Supreme Court
173 P.2d 765 (1946)


Bumstead (plaintiff) agreed to sell an orchard with all of its buildings, rights, and personal property to Ross (defendant). Under the contract, Ross gave Bumstead $5,000 upon signing the contract, would give Bumstead $20,000 upon delivery of the title and the deed, and then was to pay the remaining cost in installments over the next six years. The contract specified that upon delivery of the title and deed, Ross’s ownership of the orchard was to relate back to the date of the contract for adjusting for costs and income from the property. Unfortunately, the orchard-packing plant and warehouse were destroyed by fire eight days after the contract was signed and before the title and deed were delivered. Ross requested that Bumstead make an adjustment to the sale price for the loss, but Bumstead refused. Ross then stopped payment on his $5,000 check and refused to complete the contract. Bumstead sued Ross to recover the difference between their contract price and the actual price of selling the orchard to another party. The lower court entered a judgment for Bumstead, and Ross appealed.

Rule of Law


Holding and Reasoning (Farley, J.)

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