I need an explanation for this Economics question to help me study.
By contract dated May 1, Rob agreed to sell to Nancy, and Nancy agreed to buy from Rob, a certain house located at 10 Melbourn Road. At the time she signed the contract, Nancy transferred to Rob a deposit equal to 10% of the purchase price. The contract stated that closing and transfer of the property would occur on or before July 15. Nancy’s finances were such that she needed to obtain a loan to pay the full purchase price for the house. Pursuant to the terms of the contract, Nancy was to obtain financing for the house in an amount of $180,000. The contract. It further stated that if Nancy could not obtain $180,000 in financing from a bank, savings bank, or savings and loan association, then Nancy could cancel the contract and recover her deposit
On May 5, Nancy applied for the $180,000 loan in good faith, but only July 1, the bank notified her that she would only be allowed a loan of $50,000. Rob demands that Nancy close on the purchase and sale of the house on July 15 and Nancy sues Rob for return of her deposit. Judgement for whom? Explain.
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