Fingold v. Cook

Fingold v. Cook, 902 S.W.2d 579, 582 (Tex. App.--Houston 1st Dist. 1995, writ denied) demonstrates the fact-intensive nature of the inquiry. 902 S.W.2d at 580. In that case, Cook and Fingold entered into an earnest money contract. Id. at 580. Under the contract, Fingold, who was the buyer of the property, had to "make every reasonable effort" to obtain financing under specified terms. Id. If Fingold failed to obtain such financing, he would get back the earnest money. Id. Fingold applied for the financing specified by the contract, but his application was denied. Id. He did not re-apply to a third party for financing on these terms. Id. After Fingold failed to close on the contract, Cook sued Fingold for breach of contract and demanded the earnest money. Id. The trial court granted Cook's motion for directed verdict; however, this court reversed. Id. The Court held that whether Fingold used "reasonable efforts" to obtain the financing described in the contract was an issue of fact. Id. at 582. Although Fingold applied only once for the specified financing, it could not be said that he failed to use best efforts as a matter of law. Id.