Opinion ID: 1691397
Heading Depth: 1
Heading Rank: 3

Heading: Negotiations between the Parties

Text: ¶ 2. Robert and Karleen Theobald owned and operated the Eagle Lake Grocery and Deli (Grocery) located on Eagle Lake in Warren County, Mississippi. In early January, 1997, Robert Theobald entered into negotiations for the sale of the Grocery and agreed for Rusty Nosser and his wife, Karen, to buy the Grocery for $175,000. Although there is no disagreement that the purchase price was $175,000, there is disagreement over whether the purchase was contingent on the Nossers' ability to obtain suitable financing. The Theobalds argue that there was no such contingency, while the Nossers argue that the purchase was contingent upon the procurement of financing. ¶ 3. On February 28, 1997, a blank Promissory Note (Note) provided by Mr. Theobald was signed by Mr. and Mrs. Theobald and Mr. and Mrs. Nosser. The Note described the Grocery by title and physical address, stated that $175,000 was due the Theobalds on March 31, 1997, and stated that [i]f this Note is not paid promptly in accordance with its terms, the Undersigned agrees to pay all costs of collection, including reasonable attorney fees. However, the Theobalds signed the Note as Maker and Co-Maker while the Nossers signed it as Guarantors. Mr. Nosser testified that the sole purpose of the Note was to have a document reflecting the agreed upon purchase price, so as to prevent a future dispute over said price. The Note makes no mention of the purchase being contingent upon the securing of financing by the Nossers, and at that point, neither party was being assisted by counsel in this matter.