L. A. Boyd v. W. N. Head and Viola N. Head

This action arose out of an agreement executed March 14, 1963, between the parties concerning the sale of ranch property owned
by respondents and cross-appellants W. N. and Viola Head. Generally, the agreement provided that if the property was not "sold"
for a price of $73,000.00 or more "by" September 14, 1965, Heads had to sell it to appellant and cross-respondent Boyd who
was obliged to buy the property for $63,000.00 (Boyd terms this arrangement a "must-buy option.") Simultaneously with execution
of the agreement, Boyd loaned Heads $16,000.00, payable with eight per cent interest in three years, to enable them to redeem
their ownership interest under a previously foreclosed mortgage on the ranch property. Sometime after September 14, 1965, there still had been no completed sale of the property. Boyd then insisted unsuccessfully
that Heads convey the property to him and upon their refusal he brought the present action for specific performance of Heads'
obligation under the agreement. Heads answered that (1) the property had been sold within the terms of the agreement before
September 14, 1965, and (2) the agreement was tainted with usury and so could not be enforced in equity. Heads also counterclaimed
for usury penalties.