Question
Dr. and Mrs. Roland entered into a contract to sell their home to Hellen Ward in August of 2014. Hellen Ward paid a deposit of
Dr. and Mrs. Roland entered into a contract to sell their home to Hellen Ward in August of 2014. Hellen Ward paid a deposit of $30 000, with the agreement conditional upon Hellen Ward being able to obtain financing for the purchase. On 14 September 2014, the agent presented a waiver of the condition precedent, indicating that Hellen Ward had arranged financing for the purchase. On the strength of the now-firm contract, Dr. and Mrs. Roland entered into a contract to purchase another home from John Amphora, putting down a substantial deposit. When the time came to complete the transaction, Hellen Ward told Dr. and Mrs. Roland that she did not have the financing in place and that she would not be going though with the purchase unless they lowered the price. This forced the Rolands to terminate their contract for the Amphora home, forfeiting the deposit paid. They also were threatened with a substantial lawsuit and had to pay an additional amount to settle the matter. The Rolands sued Hellen Ward. Explain the basis of their complaint. What is the likely outcome and what would be included as a remedy? What difference would it have made if Hellen Ward had not waived the subject to financing clause?
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