Court Opinion

ID: 9774488
Source: CourtListenerOpinion
Date Created: 2023-08-29 18:22:09.126331+00
Date Added: 2024-06-11T07:32:09.068640
License: Public Domain

McGEE, Justice,
dissenting.
Because I agree with the holding of the court of appeals in this case and the holding of the court in Slam Properties v. Pickett, 495 S.W.2d 381 (Tex.Civ.App.—Tyler 1973, writ ref’d n.r.e.), I respectfully dissent. In my opinion the purchasers’ payment of five thousand dollars to the title company was a condition precedent to the formation of a binding contract.
Even if the provisions of the earnest money contract are construed as a covenant, the purchasers would not be entitled to specific performance as a matter of law. Assuming a contract had been formed, the failure of the purchasers’ bank to honor the five thousand dollar check was a material failure of performance, or failure of consideration. As such, the seller’s duty of performance under the contract was excused. See S & H Supply Co. v. Hamilton, 418 S.W.2d 489, 492 (Tex.1967) (Greenhill, J., dissenting).
CAMPBELL, J., joins in this dissent.