[Download] "Woodbridge Place Apartments v. Washington Square Capital" by United States Court of Appeals for the Seventh Circuit " eBook PDF Kindle ePub Free
eBook details
- Title: Woodbridge Place Apartments v. Washington Square Capital
- Author : United States Court of Appeals for the Seventh Circuit
- Release Date : January 08, 1992
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 86 KB
Description
WOOD, JR., Circuit Judge. This controversy highlights the distinction between an option contract and a conditional bilateral contract, as well as breach and the failure of a condition precedent. The lenders and borrower entered into an agreement where the lenders agreed to loan over 4.6 million dollars if certain conditions were satisfied on the date of closing. The loan never funded because some of these conditions were not satisfied. The borrower now asks this court to uphold the district court judgment requiring lenders to return the standby deposit that the borrower laid down when entering into this agreement. The borrower does not seem to argue that the contract's language contemplates such a return. Rather, the borrower argues that the law requires the return because the deposit is an unenforceable penalty. The lenders, on the other hand, argue that the deposit is enforceable under one of three theories: the deposit serves as consideration for an option contract; the deposit serves as consideration for the expense of the lender's loan commitment; or the deposit constitutes an enforceable liquidated damage provision.