Asia Investment Co. v. Levin

Citations

• 118 Wash. 620
• 204 P. 808
• 32 A.L.R. 578
• 1922 Wash. LEXIS 730

Syllabus

<p>Vendor and Purchaser (1) — Contract—Sale Distinguished From Option. Where a contract for the sale of real property recites the receipt of a stated sum “on account of the full purchase price” named in the instrument, and is- followed by provisions to the effect that a warranty deed is to be delivered on receipt of the balance of the purchase price in cash, that taxes for the assessment year are to be prorated, and that failure to complete purchase within the time limited, except for defect of title, shall operate as a forfeiture of the sum deposited, such contract constitutes a contract of purchase and sale, and not an option to purchase.</p> <p>Damages (32) — Liquidated Damages or Penalty — Construction of Contract. A provision in a 'contract for the sale of land for forfeiture of the sum deposited by the purchaser on failure to complete the purchase within the time stated which deposit shall be in settlement of, and fixed as, liquidated damages, is one providing for liquidated damages instead of penalty.</p> <p>Specific Performance (24) — Damages (37) — Liquidated Damages — Effect of Stipulation for — Breach of Contract for Sale of Land. A provision in a contract for the sale and purchase of land fixing liquidated damages does not destroy the vendor’s right of election between an action for damages and one for specific performance, unless the course of conduct of the vendor indicates that he has accepted the provision for liquidated damages as being the full measure of his rights.</p> <p>Damages (32, 37) — Liquidated Damages — Effect of Stipulation —Construction of Contbact. The provision in a contract of sale and purchase of land that the failure of the purchaser to complete the purchase shall operate as a forfeiture of the sum deposited, “the same being in settlement of and hereby fixed as liquidated damages” should be interpreted as meaning that the sum paid down should be taken “in settlement ... of liquidated damages,” the amount of which “being hereby fixe