Wednesday, December 18, 2013

Western Hills, Oregon, Ltd. v. Pfau case brief

Western Hills, Oregon, Ltd. v. Pfau case brief summary
508 P.2d 201 (1973)


CASE SYNOPSIS
Defendant purchasers challenged the decree of the Circuit Court, Yamhill County (Oregon), that ordered specific performance of an agreement with plaintiff owner to purchase real property.

CASE FACTS
The owner instituted a suit to compel specific performance of an agreement to purchase real property over the purchasers' allegations that they were excused from performing by a failure of a condition contained in the agreement, and that the agreement was too indefinite to permit specific enforcement.

DISCUSSION

  • The court affirmed the decree ordering specific performance, finding that the failure of the purchasers to secure the city's approval of a "satisfactory" planned development did not excuse their performance because the purchasers abandoned the development when the construction of an adequate sewage system became financially unattractive. 
  • The purchasers' dissatisfaction with the development was not bona fide and in good faith because they did not use reasonable diligence to obtain city approval when they knew the status of the sewage system when they entered the agreement. 
  • The agreement was not unenforceable for indefiniteness because there was no uncertainty as to the subject matter of the contract, for the survey map was fully adequate to identify the land and the purchasers visited the land and walked the boundaries before execution of the agreement.
CONCLUSION
The court affirmed the decree ordering specific performance against the purchasers of the agreement with the owner to purchase real property.


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