Jacob contracts to sell his house and lot to Melissa for $250,000. The terms of the contract call for Melissa to pay 20 percent of the purchase price as a deposit or down payment. The terms further stipulate that should the buyer breach the contract, the deposit will be retained by Jacob as liquidated damages. Melissa pays the deposit, but because her expected financing of the $200,000 balance falls through, she breaches the contract. After adjusting the listing price downward several times due to market volatility, 10 months later Jacob sells the house and lot to Connor for $190,000. Melissa demands her $50,000 back, but Jacob refuses, claiming that Melissa's breach and the contract terms entitle him to keep the deposit or, alternatively, to pursue his usual remedy for breach of contract. Discuss who is correct using the IRAC method of case analysis.