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

Knapp (D) entered into a listing agreement with Romero Corporation (Broker) to sell his condo for $19,750. Through the broker, Sanders (P) executed a receipt and option contract counter-offering to buy the condo for $19,000. P performed all the conditions under the contract and tendered the purchase price to Broker on October 16, 1978, even though Broker did not have the deed and closing papers. P began to treat the condo as his own by making mortgage payments and improvements. Eventually it was discovered that D held the condo in joint tenancy with his estranged wife and when he suggested selling the condo, she refused to sign. P sued D for specific performance. The court found a mutual mistake as to ownership which prevented formation of a binding contract. P's claims were denied. P appealed.

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