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Property Law Keyed to Cribbet
Gerruth Realty Co. v. Pire
Facts
Defendants signed an agreement offering to purchase property from Plaintiff. The agreement included a clause which made the purchase offer contingent upon the Defendant obtaining the proper amount of financing, without providing a precise dollar figure as the amount. Defendants attempted to borrow $75,000 from the bank but were denied because they would exceed their $100,000 borrowing limit due to having obtained other loans. Plaintiff then offered to finance $45,000, but that offer was refused by Defendants, a move with which Plaintiff took issue. Accordingly, Plaintiffs sued for performance and the trial court dismissed the complaint in favor of Defendants, finding that the “subject to financing” clause was a condition precedent to Defendants’ performance. Plaintiff appealed and the Supreme Court of Wisconsin affirmed.
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