Buyer v. Seller: Deposit Retention Upon Contract Rescission

A case arose concerning a contract for the sale of a property which was subsequently rescinded by mutual agreement, with the seller retaining a deposit paid by the buyer, followed by the buyer demanding the return of the deposit, arguing the rescission was not definitively agreed upon. The court rejected the buyer's claim, reasoning that the mutual agreement to rescind the sale, even if not formalized in a notarial deed, constituted a valid termination of the prior obligations, thereby justifying the seller's retention of the deposit as compensation for the failed transaction, consistent with the terms of their agreement regarding non-performance.