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Forman v. Benson

Illinois Appellate Court, Second District
446 N.E.2d 535 (1983)


Facts

On March 23, 1983, Eric Forman (plaintiff) offered to purchase real property from Art Benson (defendant) for $125,000.00. The purchase price was to be paid over a period of ten years. Prior to signing the agreement, Benson expressed his concern about Forman’s credit. Benson’s concern was eased after Forman’s realtor suggested conditioning the contract upon “seller’s approving buyer’s credit report.” This condition was inserted into the contract for Benson’s benefit. Benson thereafter signed the contract and received the credit report on March 27, 1981. Between then and May 14, 1981, the parties had additional discussions, during which Benson mentioned a higher purchase price. On May 14, 1981, Benson rejected Forman’s credit. In July 1981, Forman brought suit seeking specific performance of the contract. At trial, a loan officer testified that Forman’s credit was generally considered to excellent. The trial court found that Benson was required to evaluate Forman’s credit under a standard of reasonableness, and found Benson had unreasonably rejected Forman’s credit. The trial court ordered specific performance of the contract.

Rule of Law

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Issue

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Holding and Reasoning (Hopf, J.)

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Dissent

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