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Carnack contracts to sell his house and lot to Willard for $lOO,OOO.The terms of the contract call for Willard to make a deposit of l0 percent of the purchase price as a down payment. The terms further stipulate that should the buyer breach the contract, Camack will retain the deposit as liquidated damages. Willard makes the deposit, but because her expected financing of the $90,000 balance falls through, she breaches the contract. Two weeks later, Carnack sells the house and lot to Balkova for $lO5,000. Willard demands her $lO,OOO back, but Carnack refuses, claiming that Willards breach and the contract terms entitle him to keep the deposit.
Discuss who is correct.
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