Legal Question in Civil Litigation in Maryland

Breach of Contract issue

Individual signed a binding contract, with terms of breach spelled out, breached contract by reselling property without previous written consent. has now gotten property back and wishes to RESELL it to me. Terms in contract state penalty of: Return of property in full or pay no less than 1,500.00. am I obligated to PURCHASE this property or is he obligated to RETURN it free of charge due to previous breach?


Asked on 3/20/01, 7:50 am

2 Answers from Attorneys

Lawrence Holzman Holzman Law Firm, LLC

Re: Breach of Contract issue

I presume that your contract was in writing and that there were other terms to the contract as well. As such, it would be difficult to determine the exact effect of your facts without reviewing the entire document. However, there are some basic questions that must be considered on the facts that you did state: What was your actual harm suffered by the breach? The law does not favor "punitive" damages in contracts. If your "give back the property" clause is a "penalty" then it may be deemed unenforceable. Also, if you actually sold the property to the other person, your contractual restriction on the alienation (right to sell) the land is also disfavored in the law and may be found unenforceable.

You should have an attorney read the whole contract with you to determine your rights and remedies.

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

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Answered on 5/31/01, 10:14 pm
Daniel Press Chung & Press, P.C.

Re: Breach of Contract issue

It depends on the type of property and the overall terms of the deal. The law generally does not favor forfeitures, penalties for breach of contract (as opposed to actual damages or fixed liquidated damages that are reasonable up-front estimates), or restraints on alienation (provisions barring further sale of property). So there may be no enforceable contract term that was breached, nor may your remedy be enforceable. See a lawyer to discuss the particular details of your case.

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Answered on 5/28/01, 11:25 am


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