Miller v. Moulton

Citations

• 77 Wash. 325
• 137 P. 491
• 1914 Wash. LEXIS 898

Syllabus

<p>Assignments — Contracts—Payments or Security — Construction. An assignment of a contract for the purchase of land valued at $7,-500, “as part consideration” and “as security for the performance” of the assignor’s contract to purchase other lands from the assignee for $10,000, was intended as security only, where the contract of purchase recited a consideration of hut one dollar, and provided that the lands in the assigned contract might he sold for not less than $7,600 and the proceeds applied on the purchase price.</p> <p>Vendor and Purchaser — Rescission by Vendor — Forfeiture— Security for Full Performance. Upon rescission hy the vendor for default in the payment of interest due on a land contract, the vendor cannot retain a land contract assigned as security for full performance of the vendee’s contract of purchase.</p> <p>Same — Remedies of Vendor — Liquidated Damages or Penalty— Contract — Construction. An assignment of a land contract as part consideration and security for the performance of a contract to purchase land, cannot he retained as liquidated damages as provided in the contract of sale on declaring a forfeiture, where the vendee was required to do many things, such as keeping up the premises and orchard, paying taxes, etc.; since the stipulated sum was to he paid for the nonperformance of several acts of different degrees of importance, making it a penalty; and since the stipulations determining whether it was to he treated as a penalty or liquidated damages are uncertain and ambiguous.</p>