Gerruth Realty Co. v. Pire

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

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.