Gerruth Realty Co. v. Pire

17 Wis.2d 89, 115 N.W.2d 557 (1962)

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Nature of the Case

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Facts

The Pires (D) were interested in purchasing two commercial properties. One of these was owned by Gerruth Realty (P); the other was owned by a third party. D signed an instrument which was essentially an offer to purchase P's property. The instrument recited a purchase price of $30,000 and stated that it was void unless the closing of the purchase of D's property occurred simultaneously with the closing for the purchase of the other property. Although D did not believe they would have trouble financing the two purchases, they inserted a clause in the offer which made the offer contingent upon D's ability to obtain financing. D attempted to obtain financing in the amount of $75,000 from the bank with which he regularly did business, but was turned down. P and the owner of the other property offered to finance the purchases for $45,000, but D refused. P sued for specific performance. The lower court found that the financing clause was a condition precedent to D's performance and that D had made a good faith effort to get financing, but was unable to. The complaint was dismissed, and P appeals.