ÿWPCÇ" L# 8UNC %‘ 0˜—U</w@k4«¿ 0ÜÎ 0Dª î 0´î 0J¢ 0Tì @ 0^H ¦ U@® Æî 0h´ AQ 0Dm 0r± 0|# 0†Ÿ 0% 1uµ 0d* 0@Ž D3Î D/ B0U>MB)‹DC´ AM÷U*Denoîêov~YvÓ× Bª"˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLHÎ(ÈhH  Z ‹6Times New Roman RegularX(püƒ$¡¡Ò°ÒÒ„°ÒÑTR[¤ AØ'ÿ Legal[¤ AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑ-šBu Z‹$Arrus BT Roman )D*D+D,D-U./î0Ó€12äzz!ÿÿÿÿÿÿÿÿ3|x2(Œ(3Od$¤¤Ý ƒüƒ!ÝÒ°ÒÒ„°ÒÑTR[  AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÝ  Ýà ` àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó(Œ3oÚ$¢¢Ý ƒüƒ!ÝÒ°ÒÒ„°ÒÑTR[  AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÝ  Ý2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô É¸·`(ZapfCalligr BTTTƒLevel 1Level 2Level 3Level 4Level 526 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô$(Cþÿ<< Cÿÿ($$””ò òÚ  Ú1Ú  Úó ó2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ("ÿÿ$££Ò  ÒÒ  ÒKKKK'ÿÿdxd**'÷ÿ dxdüÿP Pd< Œ 9p`(&Times New Roman% Line 7 d,,,,7Border 1dd$-Cþÿ << Gÿÿ< Œ 9p`(Arial uÝ ƒ!ÝÑ  ÑÑ#€d#ÑÔ€+ÔÒ  ÒÒ „ ÒÑ\R AØ'\ÑÝ  ÝÝ ƒ"ÝÝ  Ýò òÔ€+ÔÓ  ÓÔ€/ÔÔ eee ÔFILEDÔ€/XÔó óÌò òÔ€/¼ÔÔ"USú ú, úÔÔ ƒ0 ÔÔ!  Ôó óÔ€/XÔÌÌò òCecilÏCrowson,ÏJr.Ô€Ôó óÔ  ÔÌÔ€ÂÔÔ€/ÔÔ eee Ôò òAppellateÏCourtÏClerkó óÔ  ÔÔ€ÔÔ€XÔ wÝ ƒ!ÝÑ  ÑÑ#€d#ÑÔ€+ÔÒ  ÒÒ „ ÒÑ\R AØ'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€ÔThe€complaint€also€names€as€defendants€Tommy€Caseyððs€wife,€Jo€AliceÏCasey,€First€National€Bank€of€Jackson,€EMC€Mortgage,€and€Western€UnitedÏAssurance€Company,€but€no€relief€was€sought€as€to€these€defendants.€€TheÏjudgment€disposes€of€all€issues€for€which€relief€is€sought,€and€these€additionalÏparties€are€not€involved€in€this€appeal.Ì àÝ ƒ!ÝÑ#€d#ÑÔ€+ÔÒ  ÒÒ „ ÒÑ\R AØ'\ÑÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€ÔThe€record€does€not€indicate€any€further€action€concerning€theÏtemporary€restraining€order,€nor€any€effort€seeking€a€temporary€injunctionÏpending€the€hearing€of€the€case.€€The€proof€in€the€record€indicates€that€theÏproperty€has€remained€vacant,€and€apparently€neither€party€has€attempted€toÏoccupy€or€otherwise€take€possession€of€the€property.€€The€restraining€orderÏexpired€fifteen€days€after€its€issuance€on€October€12,€1994.€€Tenn.R.Civ.P.€65.03Ï(5).ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva Ò dÝ ƒ!ÝÔ . ÔÔ€+ÔÒ  ÒÒ „ ÒÑ\R AØ'\ÑÝ  ÝÑ7€Å]XXdìdÈ7ÑÑ  ÑÔ€ÔÓ  ÓÑ  ÑÞ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àWESTERN€SECTION€AT€JACKSONÌà àà à€€€________________________________________________ÌÌò òPERRY€HART€and€wife€REBA€HART,€ó óÌÌà àPlaintiffs„Appellants,Ìà àà àà àà àà àà àà àChester€Chancery€No.€8721ÌVs.à àà àà àà àà àà àà àC.A.€No.€02A01„9602„CH„0036ÌÌò òÙ€ÙßR€.1-A1-j|d - `€€@ÿRßTOMMY€CASEY,ÌÌà àó óDefendant„Appellee,ÌÌò òJO€ALICE€CASEY,€FIRST€NATIONAL€ÌBANK€OF€JACKSON,€EMC€MORTGAGE€ÌCOMPANY€AND€WESTERN€UNITED€ÌASSURANCE€COMPANY,€ó óÌÌà àDefendants.Ì___________________________________________________________________________ÌÌà@ àFROM€THE€CHESTER€COUNTY€CHANCERY€COURTÌà@ àTHE€HONORABLE€JOE€C.€MORRIS,€CHANCELLORÌÌÌÌà@ àRicky€L.€Wood€of€ParsonsÌà@ àFor€Plaintiffs„AppellantsÌÌà@ àJ.€Alan€Rheney€and€Jonathan€O.€SteenÌà@ àSpragins,€Barnett,€Cobb€&€Butler€of€JacksonÌà@ àFor€Defendant„AppelleeÌÌÌÌà@ àò òòòREVERSED€AND€REMANDEDó óóóÌÌà@ àOpinion€filed:€€€ÌÌÌÌÌÌà àà àà àà àà àà àà àò òW.€FRANK€CRAWFORD,Ìà àà àà àà àà àà àà àPRESIDING€JUDGE,€W.S.ÌÌÌCONCUR:ÌÌDAVID€R.€FARMER,€JUDGEÌÌHERSCHEL€P.€FRANKS,€JUDGEó óÌÑ7€ΈXXdðXXdð7ÑÑ  ÑÓÓ›à àThis€appeal€involves€a€ð ðland€sale€„€purchase€agreementðð€between€PerryÏHart€and€wife,€Reba€Hart€(Buyers)€and€Tommy€Casey€(Seller).× ƒ2 ××  ×€€Buyers€appealÏfrom€the€judgment€of€the€trial€court€finding€that€the€ð ðland€sale€„€purchaseÏagreementðð€between€the€parties€had€been€terminated€and€ordering€that€SellerÏwas€the€owner€of€the€property.€€Ìà àBuyersðð€complaint,€filed€October€12,€1994,€alleges€that€by€virtue€of€aÏð ðland€sale„purchase€agreementðð€attached€as€an€exhibit€to€the€complaint,€theyÏpurchased€a€tract€of€real€estate€as€described€from€defendant,€Tommy€D.€Casey.€ÍBuyersðð€aver€that€the€property€was€encumbered€by€a€deed€of€trust€executed€byÏSeller€to€Jackson€National€Bank€and€subsequently€assigned€to€EMC€MortgageÏCorporation€and€later€assigned€to€Western€United€Life€Insurance€Company.€ÏThe€complaint€avers€that€Buyers€spent€approximately€$15,000.00€for€extensiveÏrepairs€and€remodeling€which€were€completed€in€1992.€€They€aver€that€on€JulyÏ27,1994,€they€received€a€letter€from€Seller€that€the€1993€property€taxes€had€notÏbeen€paid€and€that€the€July€rent€owed€under€the€contract€was€past€due.€€At€thatÏtime,€Seller€invoked€a€late€charge€of€$84.00.€€Buyers€allege€that€on€July€21,€1994,Ïthey€tendered€to€Seller€three€checks€in€the€total€amount€of€$602.00€to€pay€forÏthe€1993€taxes,€July€rent,€and€the€late€charge,€and€further€aver€that€when€theyÏreceived€their€bank€statement€on€July€26,€1994,€they€discovered€that€the€threeÏchecks€had€been€returned€for€insufficient€funds.€€Buyers€allege€that€they€askedÏthe€Seller,€through€his€secretary,€to€redeposit€the€checks,€€and€that€they€wereÏtold€that€the€checks€would€be€redeposited.€€Buyers€heard€nothing€from€SellerÏuntil€they€received€a€letter€from€Sellerððs€lawyer€on€or€about€August€11,€1994,Ïinforming€them€that€Seller€was€taking€possession€of€the€property€becauseÏBuyers€had€failed€to€pay€the€1993€property€taxes€and€had€defaulted€in€makingÏthe€monthly€rental€payments.€€Ìà àThe€complaint€further€avers€that€Buyers€tendered€their€August€rent€checkÏto€Seller€which€was€refused€by€letter€of€August€17th€from€Sellerððs€attorney.€ÏThey€allege€that€they€made€all€monthly€payments€required€under€their€contractÏexcept€for€the€July€and€August€1994€payments€which€were€tendered€to€SellerÏbut€were€refused.€€Buyers€allege€that€after€their€rental€payments€were€refused,Ïthey€notified€Seller€that€they€wished€to€prepay€the€balance€due€under€theÏcontract€as€provided€therein,€but€that€Seller€refused€this€request€and€advisedÏBuyers€that€he€had€taken€possession€of€the€property€pursuant€to€the€terms€ofÏthe€contract,€and€that€the€contract€was€terminated.€€Ìà àThe€complaint€alleges€that€a€course€of€dealings€had€been€establishedÏbetween€the€parties€for€late€payments,€and€that€Buyers€were€allowed€to€cureÏdefects€on€previous€occasions,€and€that€they€relied€upon€this€course€of€conduct.€ÏBuyers€aver€that€they€had€spent€a€great€deal€of€money€on€the€property,€that€theÏproperty€is€worth€approximately€$60,000.00€to€$65,000.00,€and€that€a€forfeitureÏwould€be€a€gross€injustice€and€would€cause€them€immediate€and€irreparableÏharm.€€The€complaint€prays€for€a€temporary€restraining€order€to€restrain€SellerÏfrom€taking€possession€of€Buyersðð€property€pending€a€hearing€on€the€merits,€andÏthat€Buyers€be€awarded€possession€and€Seller€be€found€in€breach€of€theÍcontract.€€Buyers€also€seek€damages,€both€compensatory€and€punitive.Ìà àThe€trial€court€issued€a€temporary€restraining€order€restraining€SellerÏfrom€taking€possession€of€the€property,€or€from€in€any€manner€disposing€of€orÏencumbering€the€property,€or€from€interfering€in€any€manner€with€theÏpossession€of€Buyers.× ƒ3 ××  ×€€Ìà àSellerððs€answer€to€the€complaint€admits€that€Buyers€were€in€default€underÏthe€contract€and€admits€that€Seller€terminated€the€contract.€€Seller€alleges€thatÏhe€operated€under€the€terms€of€the€contract,€and€he€denies€that€Buyers€areÏentitled€to€any€of€the€relief€sought.€€By€way€of€counter„claim,€Seller€alleges€thatÏBuyers€were€habitually€late€in€their€payments€and€other€obligations€and€€allowedÏthe€insurance€on€the€property€to€lapse,€and€that€they€were€warned€concerningÏbreaches€on€numerous€occasions.€€Seller€avers€that€when€the€three€checks€givenÏin€payment€of€the€delinquent€sums€heretofore€set€out€were€returned€forÏinsufficient€funds,€he€declared€the€contract€in€default,€and€that€Buyers€had€noÍfurther€rights€under€the€contract.€€The€counter„complaint€seeks€a€declarationÏthat€Buyers€were€in€default€under€the€agreement€and€that€their€rights€andÏinterest€in€the€real€estate€be€declared€null€and€void.€€Seller€also€seeks€damagesÏoccasioned€by€Buyersðð€breach€of€the€agreement.Ìà àThe€land€sale„purchase€agreement€provides€that€Buyers€purchased€theÏproperty€for€$31,000.00,€with€the€sum€of€$6,000.00€paid€at€the€time€ofÏexecution€of€the€contract.€€The€balance€of€the€purchase€price€of€$25,000.00€wasÏto€be€paid€in€225€equal€monthly€installments€at€a€rate€of€interest€that€could€beÏchanged€by€the€Seller€as€provided€in€the€agreement.€€The€contract€provides€thatÏwhen€the€entire€indebtedness€is€paid,€Seller€is€to€prepare€and€deliver€a€warrantyÏdeed€conveying€€fee€simple€title€to€the€Buyers€free€and€clear€of€all€encumbrancesÏexcept€for€current€taxes.€€The€provisions€of€the€contract€pertinent€to€the€issuesÏbefore€us€are€as€follows:€ÌÓÓà8 àà8 à1.€€As€above€recited,€the€purchase€price€for€the€above„described€real€estate€is€the€sum€of€Thirty„OneÏThousand€Dollars€($31,000.00).€€The€sum€of€SixÏThousand€Dollars€€($6,000.00),€is€paid€on€saidÏpurchase€price€at€the€time€of€the€execution€of€thisÏcontract.€€The€balance€of€said€purchase€price€in€theÏsum€of€Twenty„Five€Thousand€Dollars€($25,000.00),Ïwill€bear€interest€from€and€after€date€at€the€rate€ofÏ12%€per€annum,€to€be€amortized€and€paid€by€225Ïequal,€monthly€installments€of€$280.00€each,€theseÍinstallments€being€due€and€payable€successively€on€theÏ1st€day€of€each€consecutive€month,€beginningÏNovember€1,€1989.€€Anything€above€to€the€contraryÏnotwithstanding,€it€is€understood€and€agreed€by€andÏbetween€the€Buyers€and€the€Seller€that€the€rate€ofÏinterest€of€12%€to€be€charged€and€paid€as€aforesaid€onÏsaid€future€advances€shall€be€for€a€period€of€six€(6)Ïmonths€from€this€date€and€at€the€end€of€such€sixÏmonth€period,€the€Seller€shall€review€the€rate€ofÏinterest€charged€and€shall€increase€the€rate€of€interest,Ïdecrease€the€rate€of€interest,€or€allow€the€same€toÏremain€as€it€is,€and€shall€continue€such€semi„annualÏreview€until€the€entire€amount€of€principal€andÏinterest€due€hereunder€shall€be€paid€in€full.€€Buyers€areÏgranted€the€right€to€prepay€the€entire€unpaid€balanceÏor€any€part€thereof€prior€to€maturity,€in€which€eventÏthe€amount€thus€paid€will€first€be€applied€to€theÏpayment€of€accrued€interest€and€the€remainderÏthereof€will€be€applied€€to€and€in€reduction€of€theÏprincipal.ÌÌà8 àà8 à2.€€In€the€event€of€a€default€in€the€payment€of€any€ofÏthe€above„mentioned€installments€as€the€same€matureÏfrom€time€to€time,€then€the€entire€unpaid€balanceÏmay,€thereupon,€be€declared€due€and€payableÏforthwith,€at€the€option€of€the€Seller.€€A€failure€toÏexercise€such€option€from€time€to€time€will€notÏconstitute€a€waiver€of€the€right€to€exercise€the€sameÏin€the€event€of€future€and€additional€defaults.ÌÌà8 àà8 à3.€€In€the€event€any€installment€payment€remainsÏunpaid€for€as€long€as€fifteen€(15)€days€after€its€dueÏdate,€and€the€Seller€does€not€declare€the€entireÏindebtedness€due€and€payable€forthwith€as€provided€inÏparagraph€2,€then€there€shall€be€a€late€charge€of€fiveÏper€cent€(5%)€of€such€payment€in€default.ÌÌà àà àà àà à*à àà à*à àà à*ÌÌà8 àà8 à5.€€The€Buyers€agree€to€keep€this€property€insured€inÏboth€the€names€of€the€Buyers€and€Seller,€as€theirÏinterests€may€appear,€and€agree€to€pay€the€taxesÏassessed€against€said€real€estate€for€1990€andÏthereafter,€and€will€not€suffer€any€of€such€taxes€toÏbecome€delinquent€at€any€time.ÌÌà8 àà8 àà àà à*à àà à*à àà à*ÌÌà8 àà8 à7.€€In€the€event€the€Buyers€should€fail€to€keep€theÏproperty€insured,€the€taxes€paid€as€aforesaid,€such€mayÏbe€deemed€an€event€of€default,€and€if€not€corrected€byÏthe€Buyers,€within€a€period€of€thirty€days€after€noticeÏby€the€Seller,€the€Seller,€in€addition€to€any€other€rightsÏand€remedies€which€he€might€have€at€law€or€equity,Ïshall€have€the€right€to€declare€this€contractÏterminated€and€of€no€further€force,€effect€or€virtue,€inÏwhich€event€the€Buyers€agree€to€surrender€up€theÏpremises€to€the€Seller€without€any€resort€to€legalÏprocesses€and€the€Seller€will€have€the€right€toÏreoccupy€the€above€described€premises€as€the€lawfulÏowner€thereof,€as€any€equity€which€Buyers€may€haveÏin€such€property€will€terminate€at€the€time€SellerÏexercises€such€rights.ÌÌà8 àà8 àà àà à*à àà à*à àà à*ÌÌà8 àà8 à9.€€No€major€alterations€may€be€made€to€the€house€orÏlot€without€the€express€written€consent€of€the€Seller.ÌÌà8 àà8 à10.€€In€the€event€the€Buyers€should€fail€to€comply€withÏthe€terms€of€this€agreement,€or€in€the€event€theÏpremises€are€vacated€prior€to€the€expiration€of€theÍterm€of€this€contract,€or€should€fail€to€pay€the€entireÏunpaid€balance€of€the€purchase€price€when€the€same€isÏrequired€to€be€paid€hereunder,€such€amounts€asÏBuyers€have€paid€Seller€theretofore€may€be€retained€byÏthe€Seller€as€liquidated€damages,€and€no€part€thereofÏshall€be€refundable€to€the€Buyers.ÌÌÓÓà àThere€are€very€few€factual€disputes.€€By€letter€dated€July€21,€1994,€SellerÏadvised€Buyers€as€follows:€ÌÓÓà8 àà8 àDear€Mrs.€Hart:ÌÌà8 àà8 àIn€reference€to€your€Land€Sale„Purchase€AgreementÏdated€10„11„89€on€property€located€at€244€E.€MainÏSt.,€Henderson,€Tn.,€Iððm€hereby€enforcing€interestÏreview€in€item€No.€1€and€also€#3€concerning€a€5%€lateÏcharge€as€of€Feb.€1,€1994€due€date.€€The€new€interestÏrate€will€be€14%€with€a€payment€of€$309.69€beginningÏAugust€1,€1994.ÌÌà8 àà8 àOn€item€no.€3€concerning€15€days€past€due,€which€youÏhave€been€conscientiously€past€due€since€theÏbeginning,€Iððm€only€enforcing€past€due€status€for€1994Ïin€the€amount€of€$84.00,€which€should€be€paidÏimmediately.€€You€are€currently€due€for€7„1„94,€as€ofÏthis€date€you€are€21€days€past€due€and€this€has€beenÏconscientiously€from€the€beginning.€€Plus€the€1993Ïtaxes€also€havenððt€been€paid,€the€amount€due€on€thisÏis€$238.08.€€Unless€this€is€caught€up€to€date€andÏagreement€to€be€enforced€Iððll€consider€the€contractÏNull€and€Void€and€take€the€property€back.ÌÌà8 àà8 àI€need€to€hear€from€you€by€8„1„94€as€to€your€decision.ÌÌà àà àSincerely,ÌÌà àà àTommy€D.€CaseyÌÌÓÓà àIn€response€to€this€letter,€Buyers€sent€three€checks€totaling€$602.08€asÏrequested€in€the€letter.€€They€were€returned€for€insufficient€funds€by€BuyersððÏbank.€€Plaintiff,€Reba€Hart,€testified€that€when€she€learned€of€the€returnedÏcheck,€she€called€Sellerððs€office€and€requested€that€the€checks€be€redeposited.€€ItÏwas€her€understanding€from€her€conversation€with€Sellerððs€secretary€that€theÏchecks€would€be€redeposited.€€On€the€other€hand,€Sellerððs€secretary,€Ms.ÏWebster,€testified€that€although€she€talked€by€telephone€to€Ms.€Hart,€she€didÏnot€tell€her€that€the€checks€would€be€redeposited.€€Ms.€Webster€stated€that€sheÏmerely€told€Ms.€Hart€that€she€would€relay€the€request€for€redeposit€to€Seller,ÏTommy€Casey.€€Ìà àMs.€Hart€took€no€further€action€to€cure€the€default.€€She€testified€thatÏshe€received€no€further€notice€from€Seller€until€she€received€a€letter€datedÏAugust€11,€1994,€which€states:€ÌÓÓà8 àà8 àRe:€Property€located€at€244€East€Main€Street,ÏHenderson,€Chester€County,€TennesseeÌÌà8 àà8 àDear€Mrs.€Hart:ÌÌà8 àà8 àThis€letter€will€serve€as€notice€to€you€that€Mr.€TommyÏD.€Casey€is€exercising€his€right€to€retake€possession€ofÍthe€above€referenced€premises€which€is€the€subject€ofÏa€certain€Land€Sale„Purchase€Contract€executed€byÏyou€and€Mr.€Casey€on€October€11,€1989.€€Mr.€Casey€isÏretaking€the€property€as€a€result€of€your€default€in€theÏmonthly€payments€and€payment€of€the€taxes,€asÏrequired€by€the€terms€of€the€contract,€evidenced€inÏpart€by€the€return€for€insufficient€funds€of€your€threeÏchecks,€nos.€1774,€1775€and€1776,€in€the€aggregateÏsum€of€$602.08,€copies€of€which€are€attached€hereto.ÌÌÓÓà àBefore€the€August€11,€1994,€letter€was€received,€Buyers€had€sent€theÏAugust€rental€check€which€apparently€crossed€in€the€mail€with€Sellerððs€AugustÏ11,€1994€letter.€€Seller€refused€to€accept€this€check€and€returned€the€check€toÏBuyers€by€letter€dated€August€17,€1994,€from€Sellerððs€attorney.€€Subsequently,ÏBuyersðð€attorney,€by€letter€of€August€31,€1994,€notified€Seller€of€Buyersðð€wish€toÏprepay€the€entire€indebtedness€as€provided€in€the€contract.€€Sellerððs€attorneyÏnotified€Buyersðð€attorney€that€this€could€not€be€done€since€they€had€no€right€toÏprepay€because€the€contract€had€been€previously€terminated.€€Buyersðð€proofÏestablished€that€they€were€financially€able€to€pay€the€indebtedness€in€full€at€theÏtime€they€requested€the€payoff€statement.Ìà àMs.€Hart€testified€that€at€the€time€suit€was€filed,€the€principal€balanceÏdue€Seller€was€$22,710.00,€and€the€fair€market€value€of€the€property€wasÏ$60,000.00€to€$65,000.00.€€Mr.€Casey€testified€that€the€fair€market€value€of€theÍproperty€was€$31,000.00.Ìà àAt€the€conclusion€of€the€evidentiary€hearing€on€October€11,€1995,€theÏchancellor€took€the€case€under€advisement,€and€on€November€15,€1995,€enteredÏjudgment,€which€provides:€ÌÓÓà8 àà8 àThis€cause€came€on€to€be€heard€upon€the€11th€day€ofÏOctober,€1995,€before€the€Honorable€Joe€C.€Morris,Ïsitting€without€the€intervention€of€a€jury,€and€theÏCourt€after€hearing€all€of€the€evidence€in€the€case,Ïstipulations€of€counsel,€and€after€due€considerationÏthereof,€is€of€the€opinion€that€the€evidence€does€notÏpreponderate€in€the€favor€of€the€contentions€of€theÏPlaintiffs;ÌÌà8 àà8 àThe€Court€is€further€of€the€opinion€that€the€landÏcontract€entered€into€between€the€parties€on€OctoberÏ23,€1989,€has€been€terminated€due€to€late€payments,Ïimprovements€made€without€the€permission€of€theÏowner,€and€failure€to€properly€insure;€it€is€thereforeÌÌà8 àà8 àORDERED€that€the€land€contract€entered€intoÏbetween€the€parties€on€October€23,€1989,€isÏterminated€along€with€all€the€Plaintiffsðð€rights€to€theÏproperty,€legal€or€equitable,€and€that€the€PlaintiffsÏtake€nothing,€and€this€cause€be€dismissed€withÏprejudice.ÌÌà8 àà8 àIT€IS€FURTHER€ORDERED€that€the€TemporaryÏRestraining€Order€entered€in€this€cause€on€the€12thÏday€of€October,€1994€is€hereby€dissolved€and€shallÏhave€no€further€force€and€effect.ÌÌà8 àà8 àIT€IS€FURTHER€ORDERED€that€the€DefendantÍTommy€Casey€is€now€the€owner€of€the€property,Ïwhich€was€the€subject€of€the€land€contact,€free€andÏclear€from€any€claims€of€the€Plaintiffs€Perry€Hart€andÏwife,€Reba€Hart,€and€that€the€Counter„Complaint€beÏdismissed€with€prejudice.ÌÌÓÓà àBuyers€have€appealed€and€present€two€issues€for€review€which,€as€statedÏin€their€brief,€are:€ÌÓÓà8 àà8 à1.€€Whether€the€Chancellor€erred€in€finding€that€theÏLand€Contract€entered€into€between€the€parties€wasÏterminated€due€to€late€payments,€improvements€madeÏwithout€permission€of€the€owner,€and€failure€toÏproperly€insure.ÌÌà8 àà8 à2.€€Whether€the€Appellants€had€the€right€to€pre„payÏthe€Contract€at€any€time,€even€after€default.ÌÌÓÓà àWe€will€consider€these€two€issues€together.€€The€principle€issue€to€decideÏis€whether€under€the€terms€of€the€contract,€Buyers€had€a€right€as€of€August€31,Ï1994,€to€pay€off€the€indebtedness€owed€Seller.€€ÌÑ7€¾µXXdðXXdð7Ñœ›à àThe€cardinal€rule€in€construing€contracts€is€to€ascertain€the€intent€of€theÏparties.€€ò òòòWest€v.€Laminite€Plastics€Mfg.€Co.ó óóó,€674€S.W.2d€310€(Tenn.€App.Ï1984).€€In€construing€contracts€the€words€expressing€the€partiesðð€intentionsÏshould€be€given€the€usual,€natural,€and€ordinary€meaning,€and€in€the€absence€ofÏfraud€or€mistake€a€contract€must€be€interpreted€and€enforced€as€written,€evenÏthough€it€contains€terms€which€may€be€thought€harsh€and€unjust.€€ò òòòHeyer„JordanÍ&€Assocs.€v.€Jordanó óóó,€801€S.W.2d€814,€821€(Tenn.€App.€1990).€€A€duty€devolvesÏupon€a€court€to€enforce€a€contract€in€accordance€with€its€plain€terms€and€toÏconsider€the€entire€contract€in€determining€the€meaning€of€any€or€all€of€itsÏparts.€€ò òòòCocke€County€Bd.€of€Highway€Commððrs€v.€Newport€Utilities€Bd.ó óóó,€690ÏS.W.2d€231€(Tenn.€1985).Ìà àIn€their€first€issue,€Buyers€assert€that€the€trial€court€erred€in€finding€thatÏthe€contract€was€terminated€due€to€late€payments,€improvements€made€withoutÏpermission€of€Seller€and€failure€to€properly€insure.€Since€the€trial€court€heardÏthis€case€sitting€without€a€jury,€we€review€the€case€ò òòòde€novoó óóó€upon€the€record€withÏa€presumption€of€correctness€of€the€findings€of€fact€by€the€trial€court.€€UnlessÏthe€evidence€preponderates€against€the€findings,€we€must€affirm,€absent€error€ofÏlaw.€€T.R.A.P.€13€(d).€Ìà àAs€to€the€improvements€to€the€property,€the€contract€provision€prohibitsÏð ðmajor€alterationsðð€without€Sellerððs€permission.€€The€proof€is€that€Buyers€madeÏrepairs,€but€there€is€no€detailed€proof€in€the€record€as€to€major€alterations.€ÏMoreover,€the€record€establishes€that€Buyers€made€the€repairs€over€a€period€ofÏtime€in€excess€of€a€year,€that€Seller€and€his€employees€had€full€knowledge€of€theÏrepairs€and€never€objected€or€raised€any€question€concerning€same.€€It€alsoÍseems€quite€clear€that€repairs€to€the€property€worked€only€to€the€benefit€ofÏSeller.€€We€also€note€that€Seller€did€not€specify€this€provision€of€the€contract€asÏa€ground€for€termination.€€The€evidence€preponderates€against€the€chancellorððsÏfinding€that€a€reason€for€the€contract€Ñ „ Ñœtermination›€was€improvements€made€toÏthe€property.Ìà àAs€to€the€failure€to€properly€insure,€we€do€not€find€from€the€record€thatÏthere€is€proof€that€Buyers€allowed€any€insurance€on€the€property€to€lapse.€ÏMoreover,€Seller€did€not€assign€this€as€an€event€of€default€which€must€beÏcorrected€within€thirty€days.€€The€evidence€preponderates€against€the€finding€ofÏthe€chancellor€in€this€regard.Ìà àConcerning€the€termination€for€late€payment,€Seller€concedes€that€as€toÏthe€delinquent€installment€requirement€of€the€contract,€Seller€is€required€toÏeither€accelerate€the€balance€due€under€the€contract,€or€to€collect€a€late€chargeÏon€the€past€due€installment.€€Seller,€by€his€letter€of€July€21,€1994,€specificallyÏcalled€for€the€late€charge€and€thus€was€not€relying€on€the€delinquent€installmentÏas€a€event€of€default.€€If€we€should€consider€Sellerððs€August€11,€1994€letter€as€aÏnotice€of€acceleration,€we€must€also€consider€it€deficient€in€that€it€did€notÏinform€Buyers€of€the€amount€due€for€payment€of€the€balance€of€principal€andÏinterest€and€any€other€charges.Ìà àThe€contract€before€us€is€clear€that€Buyers€are€granted€the€right€toÍprepay€in€whole€or€in€part€the€balance€of€the€indebtedness.€€It€is€also€clear€thatÏin€the€event€Buyers€default€in€the€payment€of€an€installment,€Seller€has€theÏoption€to€accelerate€and€declare€the€entire€balance€due,€which€terminates€theÏcontract,€or€to€continue€the€contract€and€collect€a€late€charge€for€theÏinstallments.Ìà àParagraph€7€of€the€contract€provides€that€the€failure€of€Buyers€to€keepÏthe€property€insured€or€to€pay€the€taxes€due€may€be€deemed€events€of€default.€ÏThis€paragraph€specifically€provides€òòadditionalóó€rights€and€remedies€for€theseÏparticular€events€of€default.€€Seller€is€authorized€to€terminate€the€contract€ifÏthey€notify€Buyers€of€their€intent€to€do€so€if€the€defaults€set€out€in€Paragraph€7Ïare€not€corrected€within€a€period€of€thirty€days€after€notice€by€Seller.€€TheÏcontract€terms€give€Seller€the€ð ðright€to€declare€this€contract€terminated,ðð€ifÏthere€has€been€no€correction€of€the€default€by€Buyers.€€In€the€instant€case,ÏSellerððs€July€21,€1994€€letter€gave€notice€to€Buyers€that€unless€taxes€were€paidÏalong€with€the€past„due€installments,€Seller€was€terminating€the€contract.€ÏSubsequently,€by€letter€of€August€11,€1994,€Seller,€through€his€lawyer,€Ñ ° Ñœdeclared›Ïthe€contract€terminated.€€The€termination€notice€was€issued€before€thirty€daysÏhad€expired€from€the€July€21,€1994€letter,€and€specifies€as€a€ground€forÏtermination€the€delinquent€installment€payment.€€The€letters€of€July€21€andÍAugust€11€are€somewhat€confusing,€and€in€view€of€the€contract€terms,€BuyersÏcould€reasonably€believe€that€they€could€pay€off€the€balance€of€the€indebtednessÏwhich€they€promptly€tried€to€do.€€The€record€is€clear€that€Buyers€attempted€toÏpay€off€the€entire€indebtedness€after€learning€that€Seller€had€declared€theÏcontract€in€default.€€In€the€absence€of€a€specific€time€in€the€contract€for€payingÏoff€the€accelerated€balance,€a€reasonable€time€should€be€allowed€by€implication.€Ïò òòòSee€Moore€v.€Mooreó óóó,€603€S.W.2d€736€(Tenn.€App.€1980).Ìà àThe€proof€indicates€that€the€property€has€a€value€in€excess€of€the€balanceÏdue€on€the€contract,€and€Buyers€have€invested€considerable€sums€in€theÏproperty.€While€forfeitures€are€not€illegal,€they€are€not€favored€in€the€law€andÏare€to€be€strictly€construed.€€ò òòòSimmons€v.€Hittó óóó,€546€S.W.2d€587€(Tenn.€App.Ï1976).Ìà àEvery€contract€contains€an€implied€duty€of€good€faith€and€fair€dealing€inÏperformance€and€enforcement.€€ò òòòTSC€Industries,€Inc.€v.€Tomlinó óóó,€743€S.W.2d€169Ï(Tenn.€App.€1987).€€When€Seller€determined€that€the€contract€should€beÏterminated€for€nonpayment€of€installment€payments,€Buyers€had€the€right€toÏpay€off€the€balance€of€the€indebtedness€and€obtain€title€to€the€property.€€ThisÏthey€were€not€allowed€to€do.Ìà àAccordingly,€the€judgment€of€the€trial€court€is€reversed,€and€the€case€isÍremanded€to€the€trial€court.€€The€trial€court€should€require€Seller€to€promptlyÏfurnish€Buyers€a€pay„off€statement€with€the€balance€due€of€both€principal€andÏinterest.€€Since€Buyers€did€not€tender€a€pay„off€amount€into€court€at€the€timeÏof€institution€of€the€suit,€Seller€should€be€entitled€to€all€accrued€interest€to€theÏdate€of€payment.€€The€trial€court€should€allow€Buyers€a€reasonable€time€to€makeÏthe€payment€and€upon€payment€require€Seller€to€comply€with€the€terms€of€theÏcontract€concerning€the€warranty€deed.€€Costs€of€the€appeal€are€assessed€to€theÏSeller.€ÌÓÓà àà àà àà àà àà àà à_________________________________Ìà àà àà àà àà àà àà àò òW.€FRANK€CRAWFORD,Ìà àà àà àà àà àà àà àPRESIDING€JUDGE,€W.S.ó óÌÌò òCONCUR:ÌÌ_________________________________ÌDAVID€R.€FARMER,€JUDGEó óÌÌ_________________________________Ìò òHERSCHEL€P.€FRANKS,€JUDGEó óœÔ€Ô