Place in Fact-Issue-Law-Discussion-Conclusion format with points of views for both parties.

LIQUIDATED DAMAGES

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.

Is Pablo correct or does Katie have a legitimate case?