Gulden v. Sloan,

311 N.W.2d 568 (1981)

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Nature of the Case

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Facts

Gulden (P) leased a house from Krueger. The lease gave P an option to purchase the property during the lease period. The purchase price was set at $62,400. P was to be credited with any loan equity that occurred during the tenancy. The payment of the principal was to be credited towards the purchase price if the option was exercised. P made regular payments until he became unemployed and missed two payments. P then talked with Krueger and Krueger told P if P could find a purchaser for the property, Krueger would allow the property to be sold for the agreed upon price, and that P could keep any amount that exceeded the purchase price. P got Sloan (D) interested in the house. P then contends that D agreed to buy the house for $68,400. The consideration between the parties was that P would abandon their option to purchase the home and D would transfer title to his mobile home to P free of any encumbrances. D would then be free to purchase the house from Krueger at the $62,400 price. Krueger and D came to terms, and on February 1, 1980, D moved into the home and P moved into the mobile home. D then informed P that the mobile home would be paid off with his income tax refund. When P did not get the title to the mobile home, P sued for specific performance. Before trial, D transferred the mobile home to others making specific performance impossible. The trial court awarded P $6,000. D appealed.