Halpert (P) agreed to convey a family home to Rosenthal (D) for $54,000. D paid a $2000 deposit, and closing was set for June 30, 1967, almost 120 days from the date of the agreement. A termite inspection on May 17 revealed that the house was infested with termites. D notified P that he would not close. P sued. When the case came to trial, the property had been sold to another party for $35,000. D counterclaimed for the return of the $2000 deposit. The jury found for D and P appealed.

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