Walsh

Plaintiff-contractor appeals from a judgment in favor of defendant in an action for damages for breach of a contract under which plaintiff agreed to build a fourplex on defendant’s property. Defendant subsequently refused to proceed with the contract on the ground that an adequate construction loan could not be obtained and that this was a condition precedent to the effectiveness of the contract.

On April 1, 1963 defendant accepted plaintiff’s bid of $67,252.73. On May 8, 1963 defendant advised plaintiff by letter of the difficulties he was having in obtaining the loan and that with “so many refusals by lenders” he was doubtful of the project. He stated, however, that Citizens Federal Savings and Loan Association (hereafter “Citizens”) would “come up with” a loan of $68,600.

Defendant thereafter decided to accept Citizens’ loan commitment, which called for 6½ percent interest and 2 points. 1 As plaintiff states in its brief, “With the financing commitment in hand and pursuant to the requirements of Citizens, a formal written contract [between plaintiff and defendant] . . . was executed on June 21, 1963, . . .” (Italics ours.).

The contract did not mention Citizens by name,…