In Hoft v. Frenkel , Joanne Hoft sued for breach of contract after Baila Frenkel cancelled an agreement to purchase Hoft's home. (Hoft believed she was entitled to keep the $54,500 down payment.)
The sale had been conditioned upon Baila's ability to secure a mortgage commitment within 30 days. Although her mortgage application was "provisionally" approved, when it was later denied, Bailia's attorney informed Hoft the buyer wanted to cancel the deal according to the "mortgage contingency clause."
After the Rockland County Supreme Court granted Baila's request for relief in her favor, Hoft appealed to the Appellate Division, Second Department.
Baila established that she made a good-faith effort to obtain financing and was denied because she failed to meet certain qualifying criteria. According to the AD2, that entitled her to the lawsuit's dismissal and return of her contract deposit.
The AD2 certainly bailed Baila out of that one.
To download a copy of the Appellate Division's decision, please use this link: Hoft v. Frenkel