Procedural Posture

Appellant buyer sought review of a decision by the Superior Court of Santa Clara County (California), which rendered judgment in favor of respondent sellers in an action to determine the parties' rights under a contract of sale.

Overview: sample termination letter california

The buyer purchased a lot in a subdivision owned by the seller. The contract of sale provided that water was to be piped to the lots for household purposes only and that a charge would be made for water connection from the main street to the property line. The buyer complained to the purchaser that the water supplied was not palatable and that no connection was made. The buyer brought an action for declaratory relief for the purpose of having her rights under the contract determined. The sellers filed a cross-complaint for money due and owing on the sale. The trial court entered judgment for the sellers for the amount due and the buyer appealed. The court reversed. The court held that, under the terms of the contract, the sellers were required to furnish a water connection to the premises and that the failure to have done so constituted a material breach of the contract. Thus, the court said, the buyer was excused from making further payments until the connection was made. The court ruled that the provision of palatable water was indispensable for the use of the lot as a residence and, if water was not available, then the buyer had a right to rescind the agreement.

Outcome

The court reversed a judgment for the sellers against the buyer in an action to determine the parties' rights under a contract of sale.