Notorized Written Agreement: Contract or law-a-way plan?

Ask A Lawyer:United States of AmericaState: Mississippi

I entered into an agreement with a neighbor to purchase a King-sized pillow-top mattress for $1,000.00 on November 21, 2007. I paid them $350.00 as a down-payment. I was originally scheduled to have the purchase completed by the middle of December 2007. The couple had to leave the country earlier than planned. When I informed them that I could not make the entire payment, they stored the mattress in a friend's storage unit here in Mississippi and we all signed a written statement stipulating that I would complete the purchase by December 27, 2007. We wrote an agreement and had it notorized at a local bank. Since that time, I have not been able to make the payment but am still interested in making the purchase. I have apologized for my negligence and offered to make the purchase soon. However, the wife is threatening to take legal action against me. She has sent emails to this effect and informed me that I would have to pay court costs.

I informed her of my desire to make the purchase, if they were interested or dissolve the agreement and I would forfeit ALL of my down-payment due to my negligence. They are angry and have given me the option to pay or be sued. Do they have legal right to sue me for the balance when they are still in possession of the property? Additionally, the written agreement never stipulated what actions would be taken if I defaulted on the contract or if any damage was done to the property. It was a written agreement between neighbors. Please help. Was this a legally binding contract or a law-a-way agreement?

[annjd]

If they keep the down payment they will normally not get more than that.

They have to try to re-sell now.

Thanx loads!!!