Question: Robert entered into a written contract with Terry by which Terry agreed to purchase theproperty for a total contract price of $250,000. The contract included

Robert entered into a written contract with Terry by which Terry agreed to purchase theproperty for a total contract price of $250,000. The contract included a financingcontingency which gave Terry 60 days to obtain financing in the amount of $175,000,and if Terry could not obtain that financing, he could elect to terminate the contract.

The contract provided that in the event that Terry failed and refused to perform hisobligations under the contract, Robert would receive as liquidated damages the sum of$15,000.

After signing the contract, Terry did not apply for financing with any lender, andsubsequently told Robert that he was electing not to close pursuant to the financing contingency provision of the contract.

Robert brings suit against Terry to recover the $15,000 specified in the contract asliquidated damages.

Please discuss who will prevail1.identify the issues or issues involved;2.state the rule of law that applies; 3.give your conclusion and reasons therefor.

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