Question
Windsor v. Cohen : Cohen contracts to sell his house and the land it is on to Windsor for $100,000. The terms of the contract
Windsor v. Cohen:Cohen contracts to sell his house and the land it is on to Windsor for $100,000. The terms of the contract call for Windsor to pay 10% of the purchase price as a down payment. The terms further state that if the buyer breaches the contract, Cohen will keep the deposit as liquidated damages. Windsor pays the deposit, but because she ends up unable to get a loan to buy the property, she is unable to go through with the contract and ends up in breach. Two weeks later, Cohen sells the property to Ballard for $105,000. Windsor demands the $10,000 back, but Cohen refuses. Windsor files a lawsuit in court to get the $10,000 back, and Cohen claims that the contract terms allow him to keep the deposit as damages for Windsor's breach. What is the likely result?
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