Pablo contracts to sell his house and lot to Katie for $1 Million Dollars. The terms of the contract call for Katie to make deposit of 10 percent of the purchase prices as a down payment. The terms further stipulate that should the buyer breach the contract, Pablo will retain the deposit as liquidated damages. Katie makes the deposit, but because he expected financing of $900,000 balance falls through, she breaches the contract. A few weeks later, Palbo sells the house and lot to Maria for $1,050,000. Katie demands her $100K back, but Pablo refuses, citing that Katie's breach and the contract terms entitle him to keep the deposit. Discuss who is correct.

HOMEWORK FORMAT

FACTS- (This should be real easy- they come right from the book)

ISSUE(s)- (What is the dispute between the parties? What is question to be discussed?)

LAW- (What is the applicable law?) Research the law in the chapter, cite and define/explain which laws are applicable.

DISCUSSION- (This is your analysis-include major and minor points and opposing points of view or counterpoints to add depth to your analysis. Remember, use proper paragraphs. Submissions should be at least 2/3 paragraphs.)

CONCLUSION -(Sometimes referred to as the Resolution-I should be able to know your conclusion by the way your framed your issue and by your Discussion-go back to your Issue- see if you answered the question(s) posed in a sentence or two at best.)