Brief Fact Summary. While Plaintiff was in possession as vendee under the contract, a fire occurred, defendant vendor received $4,650.00 under the fire loss policy, premiums for which had been paid by Plaintiff. Plaintiff tendered to Defendant the difference between the amount actually unpaid on the contract and the insurance proceeds, but Defendant refused Plaintiff’s demand for credit on the purchase price.
Synopsis of Rule of Law. When a land purchase contract requires the vendee to keep the property insured against fire and there is a fire loss before performance of the contract is completed, any such insurance received by the vendor is to be applied on any remaining balance of the purchase price.