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Neves v. Wright

Utah Supreme Court

638 P.2d 1195 (1981)

Relevant factsFree

Wilford and Gloria Neves (plaintiffs) agreed to buy a house from Bruce and Shonnie Wright (defendants), making installment payments until the full price was paid, at which point the Wrights would deliver the deed. A week before signing the contract, the Wrights had transferred title to Bruce's parents to shield the property from Bruce's creditors. After moving in, the Neveses learned of the transfer, declared the contract fraudulent, moved out, and demanded a refund of all payments made. The Wrights countersued for damages. Before trial, the creditors' case against Bruce was dismissed and his parents returned the title. The trial court ruled for the Neveses and dismissed the Wrights' countersuit, and the Wrights appealed.

IssueFree

Whether a seller repudiates a real estate contract simply by not holding title to the property while the contract remains executory and the seller's performance is not yet due.

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