Seller Retains Deposit Upon Failure of Suspensive Financing Condition
France (FR)
Synthèse Legislator
Généré par l'IAA party contracted to purchase property under the condition that financing be secured by a specific date, and when the financing was not obtained by that deadline, the contract was automatically voided, leading the seller to retain the deposit as damages; the court upheld the lower court's decision, reasoning that the contractual clause made the financing condition suspensive and essential, meaning its failure by the stipulated date terminated the agreement outright and justified the retention of the deposit without requiring further justification from the seller.
Regeste Legislator
Généré par l'IASeller Retains Deposit Upon Failure of Suspensive Financing Condition: A party contracted to purchase property under the condition that financing be secured by a specific date, and when the financing was not obtained by that deadline, the contract was automatically voided, leading the seller to retain the deposit as damages; the court upheld the lower court's decision, reasoning that the contractual clause made the financing condition suspensive and essential, meaning its failure by the stipulated date terminated the agreement outright and justified the retention of the deposit without requiring further justification from the seller.