Allen

Allen v. Smith

Bad Law
114 Cal. Rptr. 2d 898·94 Cal. App. 4th 1270
Court of Appeal of CaliforniaJanuary 23, 2002D036608California4,244 words

Opinion

Opinion

Haller, J.

In this breach of contract action, plaintiff Barbara Allen appeals a summary judgment in favor of defendants Frank L. Smith and Jeri R. Schwartz Smith. The court found the parties’ agreement gave Allen an option to purchase the Smiths’ residential property, and after declining to exercise the option she was not entitled to a refund of any portion of her $100,000 deposit because it was a nonrefundable option fee. Allen persuasively contends the contract was actually a purchase and sale agreement and the court’s misinterpretation of it as an option and the $100,000 deposit as consideration for an option requires reversal. We also conclude the court should have granted Allen’s motion for summary adjudication on her breach of contract cause of action. Accordingly, we reverse the judgment and instruct the court to enter an order granting Allen summary adjudication on that claim.

Factual and Procedural Background

On March 10, 1999, Allen submitted an offer to purchase the Smiths’ Rancho Santa Fe home for $1,775,000. The offer was on a standard form published by the California Association of Realtors entitled “Residential Purchase Agreement (and Receipt for Deposit).” Under…

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