Bradford v. Alvey & Sons

621 P.2d 1240, 1980 Utah LEXIS 1065
CourtUtah Supreme Court
DecidedDecember 1, 1980
Docket16829
StatusPublished
Cited by18 cases

This text of 621 P.2d 1240 (Bradford v. Alvey & Sons) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bradford v. Alvey & Sons, 621 P.2d 1240, 1980 Utah LEXIS 1065 (Utah 1980).

Opinion

CROCKETT, Chief Justice:

Plaintiffs Kenneth and Tammy Bradford brought suit against defendant Alvey & Sons, the builders of a home under construction in the Shiloh Subdivision in Salt Lake County, seeking specific performance, or damages for breach, of an earnest money agreement to convey the home to the plaintiffs. After a trial to the court, findings and judgment were made in favor of the defendants. Plaintiffs appeal.

On February 17,1978, the plaintiffs made an offer to purchase a home from the defendants using the standard Earnest Money Receipt and Offer to Purchase form. The offer was made expressly conditional by a provision inserted in the form which stated: “sale subject to buyer obtaining financing (FHA).” The real estate agent who helped the plaintiffs prepare and present the offer to the defendant Alvey & Sons was Michael Herzog. He was an employee of Midvalley Investment, the real estate marketing firm which had arrangements with Alvey & Sons to sell the homes in the Shiloh Subdivision.

On February 22,1978, the defendants accepted the plaintiffs’ offer. A few days thereafter, Mr. Herzog accompanied the plaintiffs to American Home Mortgage for *1242 the purposes of loan pre-qualification. The conference did not result in the plaintiffs filing an application for a loan, nor with that company agreeing to make one.

In March of 1979, the defendants Alvey conveyed their interest in the Shiloh Subdivision to the defendant Micro Investment. In late March of 1979, Mr. Michael Crowley of that company informed the plaintiffs that because they had failed to obtain financing within a reasonable time the company would not honor the earnest money agreement. It appears that thereafter the plaintiffs busied themselves in obtaining financing and bought this suit. In July of 1979, they submitted a “loan commitment” from Mason-McDuffie as the fulfillment of their obligation to obtain financing.

The issue of controlling importance in this case is the contention of the plaintiffs that the trial court erred in finding that they had failed to perform their duty to obtain financing as required by the contract. It is true that it states no particular time in which that was to be done. However, when a provision in a contract requires an act to be performed without specifying the time, the law implies that it is to be done within a reasonable time under the circumstances; 1 and in case of controversy, that is something for the trial court to determine. 2

In support of their argument that their delay was not unreasonable under the circumstances, plaintiffs point to several aspects of their evidence. On two different occasions, they made inquiries of lending institutions about obtaining financing, but neither of those efforts proved successful. They said that they did not press efforts because the home had not been completed; and also, that representations were made to them that they need not hurry in doing so.

In regard to plaintiffs’ contentions as to the disputed critical issue referred to, the court made the following findings:

2. The clause “sale subject to buyer obtaining financing” was intended by the parties thereto as a condition precedent to their being bound by the terms of the contract of sale.
3. Plaintiffs failed and neglected to apply for financing until March of 1979, and plaintiffs failed to pursue said application made in March, 1979.
4. Plaintiffs later made an additional application for financing which resulted in their obtaining a financing loan commitment in late July of 1979, several months after the initiation of this lawsuit.
5. No attempt was made by plaintiffs to tender performance pursuant to the Earnest Money Receipt until July of 1979.
6. Said loan commitment was obtained from Mason-McDuffie, a lending institution, by reason of the omitted statements that should be contained in the loan application. Said loan commitment was unenforceable.

In considering the plaintiffs’ attack upon those findings and the refusal of the trial court to grant them specific performance, there are certain principles to keep in mind. The remedy sought here is in equity. As a predicate to equitable relief, a party must exercise reasonable efforts to discharge his own obligations. 3 The burden of convincing the trial court that they had done so rested upon the plaintiffs. In analyzing the over-all equities between these parties, the trial court could also consider the proposition that, as a practical matter, the contract as written did not actually bind the plaintiffs since they were protected by the limiting phrase “sale subject to buyer obtaining financing,” thus allowing them to effectively avoid performance by simply failing or refusing to cooperate in obtaining financing.

Though there appears to be conflict as to where the fault lay—whether upon the defendants for not proceeding with the *1243 completion of the home more rapidly, or upon the plaintiffs for failing to obtain financing to purchase it—there appears to be a reasonable basis in the evidence to justify the trial court in remaining unconvinced that the plaintiffs had sufficiently performed their obligations under the contract to justify mandating specific performance by the defendants. We are similarly unpersuaded that the evidence so clearly preponderates against the findings and determination made by the trial court that we would be justified in overturning them. 4

Though the foregoing sufficiently disposes of plaintiffs’ attack upon the judgment, they assign two further matters of error upon which we comment. The first is in the court’s sustaining objections to questions put to Mr. Bradford about his conversation with the real estate agent, Mr. Her-zog. In regard to the controversial clause in the contract requiring the plaintiffs to obtain financing, plaintiff’s counsel asked Mr. Bradford:

Q. How did that [clause] come to be placed in the agreement?
A. Mike Herzog told us that ...

Defendant’s counsel objected to the witness relating what Mr. Herzog said, which objection was sustained. Later in his testimony, Mr. Bradford was asked:

Q. Did you ever get a loan commitment from American Home Mortgage?
A. No. We did not.
Q. Why not?

A. We were told at the pre-qualification

Defendant’s counsel again objected to Mr. Bradford relating what had been told him at that conference.

Concerning these alleged errors in ruling on evidence, the following observations are pertinent. The first and insuperable obstacle to plaintiffs’ contention is that they did not make any offer of proof as to what evidence would be adduced, nor the purpose it would serve, as required by Rule 5, Utah Rules of Evidence. 5

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Bluebook (online)
621 P.2d 1240, 1980 Utah LEXIS 1065, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bradford-v-alvey-sons-utah-1980.