Superior Court Marin County

Procedural Posture

Appellant contractor sought review of a judgment entered in the Superior Court of Marin County (California) in favor of respondent property owner in the contractor's action for damages for breach of contract. The business litigation lawyer Los Angeles committed to fighting for your rights!

Overview

The contractor appealed from a judgment in favor of the property owner in an action for damages for breach of a contract under which the contractor agreed to build a fourplex for the property owner. The property owner subsequently refused to proceed with the contract on the ground that an adequate construction loan could not be obtained and that this was a condition precedent to the effectiveness of the contract. On appeal the court affirmed the judgment. The court stated that even where a contract was complete and signed, it could be shown that the parties orally agreed that it should not become binding until the happening of some event. The court found that it was agreed between the parties that the taking effect of the contract was contingent upon the property owner obtaining financing from a certain bank to complete the transaction, which financing was not obtained through no fault of the property owner. The court found that the written contract as modified by a letter indicated a specific, rather than a general, designation of the "recognized lending institution." Even if the modification merely created an uncertainty, parol evidence was admissible to aid interpretation.

Outcome

The court affirmed the judgment entered in favor of the property owner.