Contracts and Land

Chaniceis 16 years old.She owns a parcel of waterfront land that she inherited from her father who died in 2015.The land overlooks Red Point in Prince Edward Island and has direct access to a beach.The land is undeveloped.It is comprised of 7.50 acres in area and has 240 feet of beautiful white sand beach along the shore of Northumberland Strait.Chanice mows the grass on the property regularly during each summer, but has no immediate plans to make anything with the land.

Viola Davis is an actress from Los Angeles, California, USA.She is a non-resident of Prince Edward Island, but has been vacationing in Prince Edward Island every summer for the past 8 years.She wants to acquire waterfront land in Prince Edward Island and build a summer home.She is very interested in acquiring the land from Chanice.Viola is willing to pay as much as $200,000 Cdn for Chanice's land, however, she does not tell Chanice this fact.She decides that she will try to get the best price she can.

On June 15, 2020,Viola offers to buy Chanice's land, for $110,000 Cdn.Viola tells her that she will pay these funds to Chanicein cash on September 30, 2020.Chanice is extremely happy with the offer and accepts it.She shakes Viola's hand.Nothing is put in writing.

Viola has not applied for any financing, as she will use her own cash to pay Chanice.She also commits nothing to writing, assuming that she will get a Deed for the land from Chanice at the end of September when she pays her the purchase price.She has also not considered whether she needs any permits or approvals for acquiring the land.

The following dayViolahires a contractor, Quincy Jones Construction, to begin building a foundation for what will be her cottage.She enters into a written contract with the contractor to build her house for $950,000 Cdn.Viola does not yet have a Deed for the property.The contractor installs a concrete foundation.The contractor plans to complete building the cottage during the next few months.The contractor issues a progress bill on July 30, 2020 for $58,000 for the foundation.

On August10, 2020, Chanice advises Viola that she discussed the purchase price with a real estate agent and feels that $110,000 is not enough money.Chanice tells Viola that she wants $190,000 for the land.Otherwise, they have no deal.

Viola refuses to pay $190,000 for the land.She also refuses to pay the contractor's progress bill because she does not want to pay for something that is on land she is not able to buy.

Discuss the potential legal issues that may arise in this fact pattern.Indicate whether there is any further information that you need in order to identify the legal issues.