Question
Bee Anbee has long dreamt of operating a guest house in Sally Stable's community and has been looking for an appropriate property. She attends Sally's
Bee Anbee has long dreamt of operating a guest house in Sally Stable's community and has been looking for an appropriate property. She attends Sally's picnic and is taken with the beauty of Sally's stable. She tells Sally she would be very interested in purchasing Sally's stable and converting it to a guest house. At first, Sally expresses no interest, but Bee keeps increasing her offer until the price is so attractive that Sally feels she can no longer afford to turn Bee down. Sally and Bee enter into an enforceable contract in which Bee agrees to pay Sally $250,000 for the stable. Shortly before the sale is scheduled to close, Bee pays to have the stable appraised, and the appraisal comes in at only $175,000. Bee decides she was foolish to agree to pay so much for the stable, and unjustifiably refuses to complete the purchase. Instead, she purchases another, smaller property in a neighboring town for $150,000. Sally continues to operate her stable as before and seeks expectation damages from Bee. Is Sally entitled to any damages, and if so, how much should they be? Are there any incidental or consequential damages, if so, what are the values of these? Use Common Law to answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started