$3\mathrm{.}33$ pts

Harmony Development agreed to sell seven acres of a planned subdivision to Jerry Davis for $$1\mathrm{.}5$ million. The contract required Harmony to spend $$1\mathrm{.}85$ million improving the property so that Davis could construct a health club on it$.$ After Harmony made the improvements, Davis informed the company that the subdivision no longer "fit in harmony" with his plans and refused to complete the purchase. Harmony sued for breach of contract.

What is the likely result?

The court would order Davis to purchase the property for the agreed price.

The court would cancel the contract based on Davis' anticipatory repudiation.

The court would agree with Davis that the contract is impracticle to perform.

The court in equity would cancel the contract based on the doctrine of frustration of purpose.