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Luttinger v. Rosen
Connecticut Supreme Court
316 A.2d 757 (1972)
The Luttingers (plaintiffs) contracted to buy a house from the Rosens (defendants) for $85,000 and paid a 10 percent down payment. Under a condition precedent in the contract, the parties were obligated to perform the contract only if the Luttingers could obtain a mortgage for at least a twenty-year term at an interest rate of no more than 8.5 percent per annum. If the Luttingers used due diligence to get a mortgage and gave timely notice that they were unable to do so, the contract could be cancelled. In that case, the parties would be relieved of their obligations under the contract and the deposit returned in full. The Luttingers’ attorney applied for a mortgage at the only bank he knew of that would give a residential mortgage in that amount, but the bank only approved the mortgage at an interest rate of 8.75 percent. The Luttingers gave timely notice that they could not get a mortgage and requested return of their down payment. The Rosens offered to fund the interest rate difference and refused to return the down payment. The Luttingers sued, and the trial court found in their favor. The Rosens appealed, claiming the trial court erred in finding the Luttingers exercised due diligence.
Rule of Law
Holding and Reasoning (Loiselle, J.)
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