This section contains the nature of the case and procedural background.

Raplee, buyer (P), was in possession of the property under contract at the time it was destroyed by fire. The parties' contract required that P maintain insurance on the property, with Piper, seller (D), as loss payee, while the contract was pending. After the fire, the insurance company indemnified D for the loss. P demanded that the amount be applied to the purchase price of the property, and D refused.

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