Appeal Court Decision 1

 

Appeal Court Decision

Defendant buyers appealed from a judgment of the Superior Court of Del Norte County (California), which granted judgment for plaintiff sellers in the sellers' action for restitution of real property sold by the sellers to the buyers under a conditional sales contract. The trial court restored the sellers to the possession of the property.

 

Overview: coporate lawyers

 

After entering into the conditional sale agreement with the sellers, the buyers entered into a number of so-called leases with various persons. The terms of all of the leases were similar in form and contained an option to purchase, and in that event all payments made under the lease were to be applied upon the purchase price. The facts were sufficient to sustain the trial court's implied finding that the so-called leases were in reality contracts of sale and were in violation of the buyers' agreement with the sellers. The fact that each lease contained a provision that it was dependent upon the buyers' completion of their purchase contract did not change the character of the agreement. The buyers in reality were selling the property. If the buyers desired relief from their forfeiture, they should have asked for it in the trial court. The buyers also claimed that if the leases were in violation of the agreement, the sellers had waived the breach. There was substantial evidence in the record to sustain the trial court's finding that there was no waiver by the sellers. The buyers failed to plead the affirmative defense of laches. The court affirmed the judgment.

 

Outcome

The court affirmed the trial court's judgment for the sellers in their action against the buyers for restitution of real property based on a breach of contract.