Contract Enforceability. California’s Subdivision Map Act

(SMA) prohibits the sale of real property until a map of its subdivision is fi led with, and approved by, the appropriate state agency. In November 2004, Black Hills Investments, Inc., entered into two contracts with Albertson’s, Inc., to buy two parcels of property in a shopping center development. Each contract required that “all governmental approvals relating to any lot split [or] subdivision” be obtained before the sale but permitted Albertson’s to waive this condition. Black Hills made a $133,000 deposit on the purchase. A few weeks later, before the sales were complete, Albertson’s fi led with a local state agency a map that subdivided the shopping center into four parcels, including the two that Black Hills had agreed to buy. In January 2005, Black Hills objected to concessions that Albertson’s had made to a buyer of one of the other parcels, told Albertson’s that it was terminating its deal, and asked for a return of its deposit. Albertson’s refused. Black Hills fi led a suit in a California state court against Albertson’s, arguing that the contracts were void. Are these contracts valid, voidable, unenforceable, or void? Explain. [Black Hills Investments, Inc. v.

Albertson’s, Inc., 146 Cal.App.4th 883, 53 Cal.Rptr.3d 263 (4 Dist. 2007)]