This section contains the nature of the case and procedural background.

D contracted to buy the Roadhaven Condominiums from P for $ 4.7 million with a $290,000 cash downpayment and the balance to be financed by purchase money loaned to D by P. D gave a $ 165,000 check as part of the downpayment. The contract provided for liquidated damages of $ 290,000.00 as liquidated damages. The contract also gave D a period of time to review and inspect the condition of the real estate and the condition of its title, and made the sale contingent upon D's approval by the end of April 24. If they did not give written notice of disapproval within the period, the contract provided that D would be deemed to have approved. D conducted his inspection one or two days prior to April 24, 1988. On April 29, he sent a $125,000 check for the balance of the down payment. On May 20, 1988, well after the time set forth in the agreement, D sent a letter rescinding the contract, which P received on May 25, 1988. After it received D's letter, P approved D's loan. The checks that P had received were returned due to insufficient funds, and P demanded that D pay, as liquidated damages, the sum of $ 290,000. P sued D. P moved for summary judgment. P's employee, Michael Foor, testified as to the various factors taken into consideration in arriving at the figure of $290,000. Those factors included any loss of the opportunity to sell the property while it was in escrow, the effect of a failed sale on the market value of the property, the depreciation of the property until it is sold and the effect of such depreciation on market values, and potential hazards of ownership not fully covered by insurance. One year before P entered into an agreement with another buyer, New Age Investment (NAI), which provided for liquidated damages in the sum of $ 25,000. An affidavit presented by P stated that P's damages were $77,573.87, not including financing discounts, Pima's in-house administrative costs, and anticipated ongoing warranty expenses. At the time of summary judgment, all but three of the units had been sold. The trial court granted P's motion. D appealed.

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