Smith v. Warr

564 P.2d 771 (1977)

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Facts

Warr (D), buyer, and Smith (P), seller, entered a contract for the sale of the property at issue. The contract provided that seller would convey a full warranty deed upon payment of the full contract price. Before the price was fully paid, the plaintiff in the action below filed a quiet title action against the sellers based on adverse possession. D was later joined as a defendant. In his answer, D cross-claimed against seller for breach of contract. While the adverse possession action was pending, Dr continued to make payments to P pursuant to the contract. The lower court entered judgment in favor of the adverse possessors, and in favor of D on the breach of contract claim against P. D appeals the lower court's award of his out-of-pocket loss, rather than benefit-of-the-bargain damages.

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