Question
Paul owns a Bar & Grill on a heavily trafficked downtown street. Paul wants to expand his restaurant to include room for pool tables and
Paul owns a Bar & Grill on a heavily trafficked downtown street. Paul wants to expand his restaurant to include room for pool tables and dart boards. The adjacent property, owned by Quinn, is about to come up for sale. Paul wants to purchase Quinn's property. However, Paul and Quinn do not get along and Quinn would NEVER sell to Paul. Paul decides to enlist the help of Adam to purchase Quinn's property. Paul gives Adam express instructions not to tell Quinn he is purchasing the property for Paul.
Adam is unable to close the deal with Quinn and the purchase of her property. However, Adam learns the property on the other side of Paul's Bar & Grill, which is owned by Rob, is about to hit the market. Adam, having to act quickly, is able to arrange a purchase price of Rob's property below fair market value. Adam enters into a contract with Rob for the purchase of the property. Explain how each party would be liable to the other parties in the transaction given the following information.
A) Paul is thrilled with Adam's actions and wants to follow through with the purchase of Rob's property.
B) Paul's plans for expansion will not work with Rob's property for reasons which Adam was not aware and Paul does not want to go through with the purchase of Rob's property.
C) Before Adam can tell Paul he has contracted to buy Rob's property, Rob tells Adam that he has received a better offer on the property and wants to cancel the sell to Adam. Is Rob able to do this?
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