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Contracts Keyed to Kuney
Western Hills, Oregon, Ltd. v. Pfau
Citation:
265 Or. 137, 508 P.2d 201 (1973).Facts
Plaintiff owned 286 acres of land. Defendants learned that the land was for sale and formed a joint venture to purchase the property. After some negotiations, the “Exchange Agreement” was entered into on March 6, 1970. Per the agreement, defendants agreed to pay plaintiff $15,000 cash, convey four parcels of real property to plaintiff, and pay the balance of $173,6oo per other terms. The Agreement also included a condition stating that closing was “subject to ability of [defendants] to negotiate with the City of McMinnville as to a planned development satisfactory to both the first and second parties. . . ” Earlier versions of the Agreement included a provision that the transaction was subject to satisfactory sewer development by the City, but this term was deleted in the final version. Following execution, the defendants made preliminary proposals to the City, but abandoned their attempts to obtain approval due to the cost of an independent sewer system.
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