Philip Agrees to Sell His 1972 Corvette to Phyllis for $25

question 66

Essay

Philip agrees to sell his 1972 Corvette to Phyllis for $25 000.Phyllis agrees to make a down payment of $12 500 immediately and to pay the remaining $12 500 within 30 days.After making the down payment,Phyllis encounters serious financial difficulties and is unable to come up with the balance of the contract price.She advises Philip that she will be unable to close the deal and asks for her down payment back.Philip refuses,claiming that the monies previously paid are to be forfeited if she does not perform her remaining obligations under the contract.What are Phyllis's chances of success in a lawsuit to recover the $12 500?

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Definitions:

Damages

Compensation claimed by or awarded to a party for loss or injury suffered due to another's actions or negligence.

Proving Fraud

The process of establishing the intentional deception made by one party in order to gain an unfair advantage over another, which often involves legal proceedings.

Innocent Party

An individual or entity that is not at fault or involved in wrongdoing, especially in a legal context.

Fraud

A wrongful or criminal deception intended to result in financial or personal gain.