Summary judgment granted returning $2,000,000 deposit to purchaser who reasonably exercised sole discretion condition.
The plaintiff and defendants entered into an agreement of purchase and sale for commercial properties for $36,000,000.
The agreement was conditional on the plaintiff obtaining approval to assume existing mortgages on terms satisfactory to the buyer in its 'sole and absolute discretion.' The plaintiff was unable to secure satisfactory terms from the mortgagees, declared the agreement null and void, and sought the return of its $2,000,000 deposit.
Both parties moved for summary judgment.
The court found that the plaintiff made a bona fide effort to complete the transaction and that the defendants' interpretation would render the 'sole and absolute discretion' clause meaningless.
The court granted summary judgment to the plaintiff, ordering the return of the deposit plus costs.