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Contracts Keyed to Epstein
Washington Properties, Inc. v. Chin, Inc.
Citation:760 A.2d 546 (2000)
Under the contract at issue, Chin granted WPI an eight-year option to purchase certain real property in exchange for WPI’s payment to Chin of an option fee in annual installments of $20,000 upon execution of the contract and $10,000 on the first, second, and third anniversary dates of the contract. WPI made the initial payment but balked at making the subsequent payments on the ground that Chin had been unable to obtain the consent of its mortgage lender to be bound by the contract. In raising this excuse, WPI relied on Section 12 of the contract which provides: “Chin shall obtain the consent of the concurrent noteholder of the deed of trust to be bound by the terms.” WPI alleged that Section 12 was intended to be a condition precedent to WPI’s obligation to make such payments.
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