Question
Samantha signs a contract to buy abrand-newunit in Kogarah. The contract is subject to anextended settlement period of 120 days. Samantha, through her solicitor, transfers
Samantha signs a contract to buy abrand-newunit in Kogarah. The contract is subject to
anextended settlement period of 120 days. Samantha, through her solicitor, transfers the 10%deposit to the vendor's solicitor and then speaks with her mortgage broker about obtaining a loan.
While all this is going on, Samantha sells her own unit in Oatley. She intends to use the
moneyrealised from the sale of the Oatley unit to pay the balance of the purchase price
of the Kogarahunit.
A problem arises when Samantha's unit does not sell by the expected date. Samanthaneeded tosecureshort-termfinance at an almost exorbitant interest rate just so she can buy the Kogarahunit. Samantha consults her solicitor, who advises her that she can suethe buyer of her Oatleyunit for breach of contract and ask for damages including theadditional interest charges sheincurred. Is Samantha's solicitor correct? Explain your answer.
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