Smith v. Evans

CARVER, Justice.

This case presents a dispute over the disposition of the earnest money deposit accompanying a real estate sales contract permitting termination if the buyer cannot secure a loan on specified terms. Jerry P. Smith, who was the seller under the contract, appeals from a judgment awarding the earnest money deposit to Roger Evans, who was the assignee of the buyer, Shellri-ver Corp. We reverse and render because we hold that where the buyer’s contractual right to recover its earnest money is conditioned upon buyer’s inability to secure financing on stated terms, the condition is…