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

P and D entered into a contract to purchase a house to be built for them by D. Per the agreement P paid the $2,450.00 deposit and an additional cash payment of $2,450 was due on or before the house was closed in. Additional cash was due at settlement, and a mortgage for $16,500 was to be taken. If P failed to perform, D could elect to keep the deposit. D completed the 'closing in,' and P did not make the second payment. P claims they were never personally notified by D that the house had been 'closed in.' D refused to refund the deposit. The parties tried to negotiate a settlement. At this point in time P threatened D that if they did not get their way, they would sell to undesirable parties and ruin D. P sued D. The trial judge held that P were entitled to notice of the 'close in' and that without such notice their performance was not due. The court ruled for P and D appealed on grounds of duress.

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