De Leon v. Aldrette

1965

Court: Texas Court of Appeals, 4th District

Facts: Plaintiff (Aldrette) contracted to buy some land, but failed to make payments. Defendants (the De Leons) sold the land (at a lower price), but kept the payments.

Posture: Trial court finds for plaintiff, granting return of the payments plus interest.

Issue: Does a defaulting purchaser have the right to recover partial payments?

Holding: The seller can keep damages (the difference between the actual sale price and the original contract price), but the rest of the money goes back to the purchaser.

Rule: No punitive damages, no unjust enrichment.

Reasoning: A purchaser who pays a substantial portion of the purchase price would be in a worse position than one who payed nothing, if sellers could hold on to partial payments. That would be unjust.

Dicta: