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Contracts Keyed to Fuller
Lach v. Cahill
Citation:
138 Conn. 418 (1951)Facts
On November 10, 1949, Lach signed an agreement to purchase Cahill’s house in Windsor Locks for $18,000 and paid a $1,000 deposit. The contract contained a provision making the agreement “contingent upon buyer being able to obtain mortgage in the sum of $12,000.00 on the premises.” Lach, a young attorney with limited means and three small children, applied for a mortgage at the First National Bank of Windsor Locks on November 14, which was denied. Over the next week, he unsuccessfully applied at five additional banks and lending institutions. He was informed that Hartford banks were not interested in placing loans on outlying properties, and despite being a veteran, his income did not qualify for an FHA-guaranteed loan. By November 18, Rabbett informed Lach that Cahill was not interested in providing a purchase money mortgage. On December 1, Lach requested the return of his deposit, citing his inability to secure financing. Though Cahill later offered a purchase money mortgage payable on demand, he specified no terms, and by then Lach had already made a deposit on another house.
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