Harrington v. Feld

In July 1987 Janet Lee Harrington entered into a contract with Lorraine and Louis Feld to purchase their home. She agreed to pay $78,500 and all the closing costs. She tendered a $1,000 earnest money check to Johnson-Rast and Hays, the real estate sales agency.

The contract to purchase the home was contingent upon Harrington's obtaining financing for 95% of the purchase price. By the express terms of the contract she agreed to "make every effort to obtain approval" of the loan to purchase the home.

Harrington contacted a mortgage company to arrange financing. The mortgage company prepared an…