What is the legal effect of the text


Problem

Buyer contracts to purchase an undeveloped parcel of land from Seller. Buyer will need to obtain financing from a bank to purchase the parcel and is concerned about the possibility of rising interest rates and his ability to secure financing. Accordingly, Buyer negotiates a provision in the purchase agreement that provides that "Buyer's obligation to purchase the parcel is conditioned upon him securing 30-year mortgage financing at an interest rate no higher than 3.75%." Buyer meets with several bankers before the closing and can only find a mortgage rate of 3.8%. One day before the day set for the closing, Buyer e-mails Seller and writes, "I've not been able to find a mortgage at 3.75%, but I still want to buy the property. I'm planning to close tomorrow." What is the legal effect of this text?

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Business Law and Ethics: What is the legal effect of the text
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