Landowner sold an option to purchase land for $750,000 to Developer for one year. The option required Developer to pay $5,000 per month (due on the 1st day of each month) to Landowner to maintain the option. After Landowner accepted three late payments, Developer made the fourth month's payment to Landowner on the 4th. Landowner rejected the payment, and contracted to sell the land to Hotel Corp. for $1,500,000. If Developer sues to enforce the option and purchase the land for $750,000:

Question 5 options:

a)

Developer will not be able to argue for relief from forfeiture because the forfeiture is not extreme.

b)

Developer will only be able to argue for relief from forfeiture under the objective test.

c)

Developer will be able to argue for relief from forfeiture based on waiver.

d)

Both a and b.

Social Science

Law

CONTRACTS CL610-02

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