Gallo v. Brengard Construction Co.

Plaintiff and defendant entered into an agreement, called a binder, pursuant to which plaintiff paid defendant the sum of $500 as a deposit for the construction of a house on certain lots owned by plaintiff. The binder provided that the deposit shall be applied to the cost of preparing *841plans and specifications and to the purchase price, and also that if a mortgage commitment be not granted, plaintiff was to receive the plans and specifications and a refund of $300. Plaintiff obtained a mortgage commitment, but the parties were unable to obtain a building permit because of lack of proper…