Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pablo contracts to sell his house and lot to Katie for $1 Million Dollars. The terms of the contract call for Katie to make a

Pablo contracts to sell his house and lot to Katie for $1 Million Dollars. The terms of the contract call for Katie to make a deposit of 10 percent of the purchase prices as a down payment. The terms further stipulate that should the buyer breach the contract, Pablo will retain the deposit as liquidated damages. Katie makes the deposit, but because he expected financing of $900,000 balance falls through, she breaches the contract. A few weeks later, Palbo sells the house and lot to Maria for $1,050,000. Katie demands her $100K back, but Pablo refuses, citing that Katie's breach and the contract terms entitle him to keep the deposit. Discuss who is correct.

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

International Finance Theory And Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

11th Global Edition

1292238739, 978-1292238739

More Books

Students also viewed these Finance questions

Question

6.64 Find zo such that P(z> zo) = 0.5.

Answered: 1 week ago