John Hardy, the general manager of a large retail home improvement chain, was seeking to expand into new locations. When Hardy learned that a large plot of land near a residential development was available for sale to commercial entities, he entered into negotiations with the property owner to purchase a majority of the land. Eventually, a letter of intent was signed, which set forth the general terms and conditions of the negotiated purchase. Although both parties intended to sign a formal acquisition agreement at the closing, neither expressed any doubt that the purchase would be successfully concluded. Moreover, it was well known that Hardy’s company had the necessary financial backing to complete the transaction.

A few days later, however, Hardy heard a rumor that the City Planning Commission was discussing the possible adoption of a new zoning ordinance that would reserve certain open lands for residential development. If passed, the ordinance would prevent Hardy from building a retail store on the tract of land that was the subject of the signed letter of intent. The proposed zoning ordinance had many opponents, but it was unclear how the Commission would ultimately resolve the issue. What should Hardy do?