Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Joe is looking for a home to buy in North Fresno. He contracts with Cambrio Homes to build a track home in that area for

Joe is looking for a home to buy in North Fresno. He contracts with Cambrio Homes to build a track home in that area for a cost of $400,000. Cambrio is a national company that comes into cities and builds track homes in large neighborhoods. After the contract had been entered into the housing prices in Fresno skyrocket and Cambrio can now sell its homes for $50,000 more than they sold the house to Joe. Cambrio, therefore, terminates its contract with Joe. Before Cambrio can sell the home to someone else, Joe files suit to force Cambrio to sell him the house.

  1. Would Joe sue Cambrio in law or equity? In your answer explain the difference between a case in law and a case in equity. (15% of total points)
  2. Assuming Joe sued in equity, what theory would he use to force Cambrio to go through with the sale and explain why legally it would be available in this case (i.e., what are the elements of this theory)? (20% of total points)
  3. Discuss what actions involving injunctions that Joe might take in court to make sure Cambrio cannot sell the home before Joe is able go to trial and potentially obtain a judgment (assume Cambrio has a buyer ready to buy Joe's house within the next week). (35% of total points)
  4. Assuming Joe cannot force Cambrio to sell him the home, and to get a similar home it would cost Joe $445,000, (i) would he still have a damage claim against Cambrio and (ii) what would his damages be? (30% of total points)

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

Financial Markets And Institutions

Authors: Jeff Madura

10th Edition

1285531507, 9781285531502

More Books

Students also viewed these Finance questions