Troy Feldmon agreed to purchase a house from Jenny King for $60,000. Jenny King had previously agreed to sell the house to another individual but that transaction had not been completed due to the purchaser's default. Jenny was very concerned that steps be taken to ensure Troy was serious about completing the purchase so she demanded a deposit of $20,000 and that the contract state "in the event that the purchaser does not complete the transaction the entire deposit would be forfeited as liquidated damages". As it so happened, Troy was unable to complete the purchase due to an unexpected financial setback. Jenny King then declared the deposit forfeited. Will Troy be able to recover all or part of his deposit?

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The Answer of Troy Feldmon agreed to purchase a house from Jenny King for $60,000. Jenny King had previously agreed to sell the house to another individual but that transaction had not been completed due to the purchaser's default. Jenny was very concerned that steps be taken to ensure Troy was serious about completing the purchase so she demanded a deposit of $20,000 and that the contract state "in the event that the purchaser does not complete the transaction the entire deposit would be forfeited as liquidated damages". As it so happened, Troy was unable to complete the purchase due to an unexpected financial setback. Jenny King then declared the deposit forfeited. Will Troy be able to recover all or part of his deposit?

Troy Feldmon Agreed to Purchase a House from Jenny King