Schmidt v. Oregon Asphaltic Paving Co.

Defendant appeals from a judgment for plaintiffs declaring the parties’ earnest money agreement null and void. ORS 28.020. We reverse.

On July 14, 1988, the parties signed an earnest money agreement wherein defendant agreed to purchase 177 acres of land from plaintiffs for $1,000,000. Among several contingencies, the agreement provided for the following condition, which is the focal point of the parties’ dispute:

“[S]ale contingent upon purchaser obtaining permits to mine gravel from this property and also to receive permits to haul gravel on state and county highways.”

The agreement also…