2) Raymond Steele entered into a contract with Michelle Findley to purchase a parcel of property for $175,000. The contract contained a mortgage contingency clause that provided that the contract was contingent upon the buyer obtaining a first mortgage commitment from a lending institution in the amount of $140,000 within four weeks from the signing of the contract. The clause further stated that the buyer agreed to make a good faith application for the mortgage loan and that, if approval was not obtained in the four – week period, either party could terminate the contract by providing written notice. Raymond obtained a conditional mortgage commitment letter for $180,000 from ABC Bank within the time frame specified in the contract. The letter contained closing conditions and a list of approval conditions, including an appraisal report indicating the value of $195,000 for the property. ( The purchase price was $175,000.) Upon expiration of the four-week deadline, Michelle’s attorney sent Raymond a letter stating that Michelle elected to terminate the contract. She then entered into another contract with a new prospective buyer. Has Michelle breached the contract with Raymond? why or why not?
