Matt and Mary Whitehead owned a house. The Whiteheads entered into a two-year lease and purchase agreement with Douglas and Gayla Habig. The Habigs paid an amount of money for an option to buy, and they promised to make certain improvements to the property. The lease term was to expire in October 31.
On October 30, the Habigs wrote to the Whiteheads, advising that they would not proceed with the purchase until the unsatisfactory conditions of the property had been remedied. They contended the house was currently unfit for habitation and unmerchantable.
