Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Buddy negotiated and obtained a written option to purchase Wilson Acres from Sally who was the record owner. The price was $500,000 and the option

Buddy negotiated and obtained a written option to purchase Wilson Acres from Sally who was the record owner. The price was $500,000 and the option fee was $10,000, which Buddy paid to Sally. The next day Buddy gave Charlie an option to purchase the land for $600,000 plus an option fee of $15,000, which Charlie paid to Buddy. One week later, Charlie exercised his option, and within 10 days' time, Buddy was able to exercise his option with Sally and to obtain title to Wilson Acres. Thereafter, Buddy tendered his deed to Charlie, but Charlie refused to go through with the deal on the ground that Buddy did not have title to the land when Buddy gave the option to Charlie. Buddy brought an action against Charlie for specific performance or, in the alternative, for damages, if the court denied the request for specific performance. Charlie counterclaimed for rescission of the contract. In this action, the court will most likely: Question 2 options: a) Grant specific performance of the contract to Buddy because Buddy had a valid option to purchase the property from Sally. b) Deny specific performance, because the legal remedy of damages is adequate and award those damages to Buddy. c) Deny specific performance, but permit Buddy to retain the $15,000 option fee. d) Rescind the contract because Buddy did not have title at the time he contracted with Charlie and require Buddy to refund the $15,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students also viewed these Law questions

Question

1. What is a security? LOP8

Answered: 1 week ago

Question

2. What are the two main functions of the financial system? LOP8

Answered: 1 week ago