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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Federated Mortgage Investors v. American Savings & Loan Association, 47 Cal. App. 3d 917 (1975)

Citation
Federated Mortgage Investors v. American Savings & Loan Association, 47 Cal. App. 3d 917 (1975)
Parent Document
Federated Mortgage Investors v. American Savings & Loan Association, 47 Cal. App. 3d 917 (1975)
Jurisdiction
California (state)
Effective Date
1975-05-02

Other Sections in This Document (58)

Full Text

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119 Cal.App. 688, 690 [7 P.2d 204].) If Federated had any such obligation it could only be contractual in origin. Federated agreed in a contract with Central Towers to deliver the “security rent deposits.” Central Towers apparently would not agree to reduce its contractual rights under its contractual arrangements with Federated, that the security deposits be deposited in escrow. If Federated was obligated by contract to deposit the security deposits in escrow, Central Towers had the right to refuse to modify or reduce its contractual rights as expressed in its contract with Federated and in its escrow instructions. The proximate cause of Federated’s dilemma is that it obligated itself to Central Towers to deliver the security deposit into the escrow without acquiring an enforceable contractual right to require American to deliver the security deposits to Federated. Since Federated drafted the agreement with American, it is the author of its own dilemma.