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 the expected financing of $900,000 balance falls through, she breaches the contract. A few weeks later, Pablo sells the house and lot to Maria for $1,050,000. Katie demands her $100K back, but Pablo refuses, citing Katie's breach and the contract terms entitle him to keep the deposit.Who is correct?

Please try to answer using the format below:

FACTS-(This should be easy- they come right from the book) ISSUE(s)- (What is the dispute between the parties? What is questioned to be discussed?)

ISSUE(s)-(What is the dispute between the parties? What is questioned 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.

CONCLUSION- (Sometimes referred to as the Resolution-I should be able to know your conclusion by the way you 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.)