Renovest Co. v. Hodges Development Corp.
New Hampshire Supreme Court
600 A.2d 448 (N.H. 1991)
Renovest Co. (Renovest) (plaintiff) agreed to buy an apartment complex from Hodges Development Corp. (Hodges) (defendant), paying a $65,000 deposit under an agreement with two conditions precedent: an inspection to be completed within 14 business days, with any objection to be sent within three days after inspection, and a 45-day deadline for Renovest to secure financing. Renovest inspected the complex on July 10, found a crack in a building, and told Hodges about it the next day, but then stopped pursuing financing, assuming banks wouldn't finance a cracked building. After further inspections, Renovest didn't tell Hodges it was terminating under the inspection condition until August 7, well past the contractual deadline, and separately cited its financing failure on August 12. When Hodges refused to return the deposit, Renovest sued, and the trial court dismissed the case; Renovest appealed.
Whether, where the occurrence of a condition is required by the agreement of the parties rather than as a matter of law, a rule of strict compliance traditionally applies.