Court of Appeals of Indiana, Third District
391 N.E.2d 671 (1979)
The Hensels (plaintiffs) entered into a contract to sell their home to the Billmans (defendant) for $54,000. The contract required a $1,000 earnest money deposit from the Billmans. Additionally, the contract included a “subject to financing” clause stating that the contract was conditioned upon the ability of the Billmans to secure a conventional mortgage on the property for not less than $35,000 within thirty days. The Billmans gave a check for $1,000 to the Hensels as earnest money. On September 30th, the Billmans met with Lincoln National Bank and Trust Company to discuss a mortgage. Mr. Billman was told that he could not obtain a mortgage for $35,000 unless he could come up with the difference between the purchase price ($54,000) and the mortgage. The Billmans were $6,500 short of the required balance. On October 3rd, Mr. Billman and his parents viewed the Hensels’ home. Mr. Billman later told the Hensels that the deal was off because Mr. Billman’s parents would not loan him $5,000 needed to complete the financing. The Hensels offered to reduce the price of the home by $5,000. Mr. Billman rejected this offer, saying that he was still $1,500 of the required balance. On October 4th, Mrs. Billman stopped payment on the check for earnest money given to the Hensels. The Hensels brought suit in Indiana state court seeking payment of their $1,000 earnest money deposit by the Billmans. The trial court held that the Billmans were not excused from performance of the contract, and awarded $1,000 to the Hensels. The Billmans appealed.
Rule of Law
Holding and Reasoning (Garrard, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 223,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.