Contracts Keyed to Calamari
Western Hills, Oregon, Ltd. v. Pfau
Facts
The Plaintiff, Western Hills, Oregon, Ltd. (the "Plaintiff"), a limited partnership, was the owner of a piece of property. The Defendants, Pfau and other (the "Defendants"), the members of a joint venture, purchased the property from the Plaintiff for development purposes. The purchase was memorialized in an "Exchange Agreement". The purchase was made "subject to ability of purchasers to negotiate with City of McMinnville as to a planned development satisfactory to both first and second parties within 90 days from date. A reasonable extension not to exceed 6 months to be granted if necessary." At the time the agreement was signed, the Defendants knew the city would not be developing the sewer system for a while. The Defendants made certain preliminary proposals to the city for a planned development, but abandoned the plans because the development would be too expensive due to the cost of privately constructing the sewers. The city's Planning Commission reacted favorably to the preliminary plans. The Plaintiff sought specific performance of the agreement and the Defendant argued that since the condition was not satisfied they did not have to perform. The trial court held for the Plaintiff.
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