Strouse v. Starbuck

Strouse (plaintiff) owned 239 acres of land that Starbuck (defendant) sought to purchase through real estate agent Delcour, and after initially declining to sell, Strouse signed an authorization limiting who could be shown the property to Starbuck alone. The parties then executed a purchase agreement including a liquidated damages clause of 10 percent of the $225,000 purchase price, but Starbuck could not close because he couldn't obtain financing. At trial, Strouse testified that Delcour's wife had told other prospective buyers the property had already been sold, allegedly preventing Strouse from selling to someone else during that period; the trial judge ruled for Starbuck without written findings, and Strouse appealed.