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Contracts Keyed to Summers
Luttinger v. Rosen
Citation:
164 Conn. 45, 316 A.2d 757Facts
The Luttingers (plaintiffs) entered into a contract to purchase a home from the Rosens (defendants) for $85,000. The Luttingers paid an $8,500 deposit for the home. The contract was subject to a condition precedent that required the Luttingers to obtain a mortgage in the amount of $45,000 “for a term of not less than twenty (20) years and at an interest rate which does not exceed 8 1/2 per cent per annum.” If the Luttingers were unsuccessful in obtaining the mortgage, then they could receive a refund on their deposit and the contract could be terminated so long as they notified the Rosens within a specific time. The Luttingers’ attorney knew that there was only one bank in the area that would lend $45,000 for a single-family home. The Luttingers’ attorney obtained a mortgage from that bank, but the offered interest rate of 8 3/4 percent failed to meet the contract’s requirements. The Rosens offered to make up the difference in the interest rate offered by the bank, but the Luttingers refused their offer. When the Rosens refused to return the Luttingers’ deposit, the Luttingers sued.
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