Highlands Plaza, Inc., entered into an agreement to purchase property from Viking Investment Corporation. The purchase was conditioned upon Highlands obtaining a $725,000 mortgage on the property. Highlands was able to obtain the $725,000 only through a first and second mortgage with different institutions, but still sought to go through with the sale. Viking refused on the grounds that the financing condition was not met. Highlands has brought suit for specific performance. What is the result?

Question

Quizplus · Accepted Answer

The contract condition has been satisfied because Highlands was able to secure the total financing of $725,000 required, albeit through two different mortgages. The specific manner of financing (one mortgage versus two) was not stipulated as a condition, so Viking must perform under the contract.