Louisiana Real Estate Commission v. Butler
Louisiana Court of Appeal
899 So.2d 151 (2005)
The Butlers (defendants) drafted a contract to buy the Crockers' (defendants) house, conditioning the purchase on obtaining a loan in an amount "to be determined" at 8.5 percent interest, while also representing they had sufficient funds to complete the purchase; after a bank rejected the Butlers' application for a loan covering 90 percent of the property's value, the Butlers withdrew their offer and sought return of their $12,500 down payment, arguing mutual misunderstanding over the amount to be financed voided the contract. The trial court ruled the Crockers could keep the down payment, and the Butlers appealed.
Whether ambiguous text in a contract is interpreted against the party that furnished the text.