Legal Question in Real Estate Law in Michigan

breach of contract

This is a district court case. Plaintiff breached real estate contract by applying for 100% financing when contract required 80% should be applied for. Lender denied loan on the basis of home not appraising, therefore, deal fell through. Defendant sold home in two months. Question: Can a defendant be unjustly enriched if plaintiff is found in breach of contract but defendant incurred no financial damages? Contract states that if plaintiff is found in default, deposit goes to defendant. Does district court judge have any latitude in splitting that $5,000 earnest money? Thanks!


Asked on 1/09/07, 8:37 pm

2 Answers from Attorneys

Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: breach of contract

No, unjust enrichment would not be one of Plaintiff's causes of action because Defendant did not receive any "enrichment" unless Plaintiff is suing to recover the $5000 deposit. A judge can "split" the deposit at a bench trial, and can greatly encourage the parties to split the difference at a settlement conference.

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Answered on 1/10/07, 8:12 am
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: breach of contract

I need to correct my response. Unjust enrichment would not be a cause of action for Defendant, but would be a cause of action for Plaintiff if Plaintiff is suing to recover the earnest money deposit.

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Answered on 1/11/07, 12:51 pm


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