COVINGTON V. ROBINSON
723 S.W.2d 643 (1986)
NATURE OF THE CASE: This was a dispute over an earnest money deposit.
FACTS: Robinson (D) owned land and Covington (P) agreed to buy that land for $2,010,675.
International Farm (D1) acted as the agent in the sale. The contract was contingent on D
getting a federal land bank loan for 75% of the purchase price. P put up $100,000 in earnest
money. Upon default the earnest money was to be divided equally between D and D1.
Applications were submitted to two different counties for land bank loans because the land
lay between them. The gross monies applied for was 73.98% of the land value but when money
for improvements was counted, it would be 80.81%. The applications were approved and no
effort was made to increase the amounts of the loans by 1.02%. P then declined to close the
deal. P sued D for the earnest money and the trial judge found substantial compliance and
that P had failed to make a good faith effort to close the transaction. Ds got the earnest
money and P's appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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