Niernberg v. Feld
Supreme Court of Colorado
283 P.2d 640 (1955)
The Niernbergs (defendants) agreed in writing to sell real estate to the Felds (plaintiffs), with the Felds' down payment to be forfeited as liquidated damages if they failed to pay the remaining balance by a set date. Before that deadline, the Felds told the Niernbergs they no longer wanted to complete the purchase, and Mr. Feld met with Mr. Niernberg (without their wives present, though both wives had signed the original contract) to discuss returning the down payment, allegedly agreeing that Niernberg would refund the full down payment if he resold the property for more than the Felds' offer, or a partial refund if he sold for less. Niernberg denied any such meeting or agreement, then sold the property for more than the Felds' original offer but refused to refund any of the down payment; the Felds sued, and a jury awarded them the down payment plus interest, prompting Niernberg's appeal.
Whether a written real estate purchase contract, required to be in writing under the statute of frauds, may be validly rescinded through a later oral agreement between the parties.