Mr. and Mrs. Rodrigues entered into a contract to sell their home to Elizabeth Walters in July

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Mr. and Mrs. Rodrigues entered into a contract to sell their home to Elizabeth Walters in July of 2004. Mrs. Walters paid a deposit of $10, 000 and the agreement was conditional upon Mrs. Walters being able to obtain financing for the purchase. On 4 August 2004, the agent presented a waiver of the condition precedent, indicating that Mrs. Walters had arranged financing for the purchase. On the strength of the now-firm contract, Mr. and Mrs. Rodrigues entered into a contract to purchase another home from James Barclay, putting down a substantial deposit. When the time came to complete the transaction Mrs. Walters told Mr. and Mrs. Rodrigues that she did not have the financing in place and that she would not be going though with the purchase unless they lowered the price. This forced the Rodrigues to terminate their contract for the Barclay home, forfeiting the deposit paid. They also were threatened with a substantial lawsuit and had to pay an additional amount to settle the matter. The Rodrigues sued Mrs. Walters. Explain the basis of their complaint. What is the likely outcome and what would be included as a remedy? What difference would it have made if Mrs. Walters had not waived the subject to financing clause?

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