Opinion ID: 1271302
Heading Depth: 1
Heading Rank: 4

Heading: disposition in the lower courts

Text: Relying on letters sent by representatives of the lienholders after November 8, the trial court found that the encumbrances could have been released upon payment of the net proceeds which Kaiser was to tender under the contract. The court concluded that Wright was in a position to close the transaction and had substantially performed his contractual obligations since he had made preparations to obtain the releases with those proceeds. The trial court held that the actual releases did not have to be presented to the buyer at the closing. The court then stated that because Kaiser had been absent from the state until just prior to the closing, and apparently because he had anticipatorily repudiated the contract, he was estopped from demanding that the actual written releases or written agreements to release be present. The court of appeals affirmed. Although that court did not reach the issue of estoppel, it concluded that there was sufficient evidence to support the trial court's findings that the encumbrances on the Wright property could have been released upon payment of the net proceeds. Because the contract specifically allowed the seller to pay encumbrances from the proceeds, the court of appeals affirmed the trial court's conclusion that Wright had substantially performed his obligations under the contract and was entitled to retain the earnest money as liquidated damages.