Parsons v. Bristol Development Co.
Supreme Court of California
402 P.2d 839 (Cal. 1965)
Bristol (defendant) hired architect Parsons (plaintiff) under a contract making payment of 75% of his fee conditional on obtaining construction financing and payable only from construction funds once building began, while the remaining 25% was paid upfront based on a preliminary financing arrangement; when an adverse title claim on the land ultimately prevented Bristol from securing the financing, construction never began, and Bristol told Parsons to stop work. Parsons sued for additional compensation for work performed beyond the initial 25%, and the trial court ruled for Bristol.
Whether a contractor may recover for services rendered when he was to be paid only from a construction loan fund and the loan was never granted.