Billman v. Hensel case brief summary
391 N.E.2d 671 (1979)
Appellant buyers challenged a judgment
of the Allen Superior Court, Small Claims Division (Indiana) entered
against them and in favor of appellee sellers in the sellers' action
for specific performance of a contract to sell a house to the buyers.
CASE FACTS The sellers contracted to sell their
home to the buyers. A condition of the contract was the ability of
the buyers to secure a conventional mortgage on the property for not
less than $ 35,000 within 30 days. When the buyers did not complete
the purchase, the sellers commenced an action to secure a $ 1,000
earnest money/liquidated damage deposit required by the contract. The
buyers defended upon the basis that they were relieved from
performing in that they could not obtain financing. The trial court
entered judgment in favor of the sellers.
The court affirmed, holding
that the buyers were not excused from performance.
to financing" clause imposed upon the buyers an implied
obligation to make a reasonable and good faith effort to satisfy the
The evidence supported the trial court's conclusion that
the sellers carried their burden of proof by establishing that the
buyers had not made a reasonable and good faith effort to secure the
necessary financing and, therefore, could not rely upon the condition
to relieve their duty to perform.
The court affirmed the trial court's judgment in favor of the
sellers. Recommended Supplements and Study Aids for Property Law
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