Knox v. Townes

OPINION

HALL, Justice.

On February 22, 1970, appellant and ap-pellee executed a written contract whereby appellee was to purchase a residence, located in Dallas, from appellant for the price of $52,500. Appellee paid appellant $1,000 as earnest money. Under the terms of the contract, the earnest money would be forfeited to appellant if appellee failed to consummate the sale. However, the agreement contained this clause: “This contract is contingent upon purchaser obtaining satisfactory financing.”

The contract of sale was never performed. Appellee brought this action for the recovery of the…