Billman v. Hensel
|Billman v. Hensel|
|Court||Indiana Court of Appeals|
|Date decided||July 5, 1979|
This case is about a real estate contract.
The Hensel couple entered into a contract to sell their house to the Billman couple for $54,000. Their contact required the Billmans to pay $1,000 as earnest money. The Billmans were, moreover, required to pay get financing for $35,000 within 30 days.
The Billmans banker required Mr. Billman to immediately pay $6,500 to the seller Hensel--otherwise the bank wouldn't finance the $35,000.Billman backed out of the contract even after Mr. Hensel offered him a $5,000 discount.
- The Hensels (plaintiffs) = sellers of a home
- Billmans (defendant) = buyers
The Hensels sued the Billmans in the Indiana State Court seeking payment of the earnest money which the Billmans had stopped.Hensels win $1,000 in the trial court.
What happens when a contracting party fails to make a good-faith effort to satisfy the conditions of a contract?Does a real estate contract's subject-to-financing clause impose on the buyer an implied obligation to make a reasonable & good-faith effort to satisfy the condition by obtaining the requisite financing?
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