Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Vincent agrees to sell his beloved manor house in upstate New York for $1.5 million to his dear friend Mildred, closing on September 1. Mildred
Vincent agrees to sell his beloved manor house in upstate New York for $1.5 million to his dear friend Mildred, closing on September 1. Mildred promptly gets the house appraised, at a cost of $5,000, and discovers that it is really worth $1.9 million. She also learns that she can acquire a 25-acre parcel of property next to the manor house for a great price -- $350,000. If she combines the manor house and its land with the new parcel of property, and builds a horse stable on the new parcel for $100,000, the appraiser says that the combination would be worth $2.7 million. Mildred promptly pays a $15,000 option fee on the neighboring 25-acre parcel, giving her the ability to exercise the option through August 20. Mildred then hires an architect to begin designing a horse stable, at a cost of $10,000. On August 20, Mildred signs a purchase agreement for the 25-acre parcel. On August 25, Vincent anticipatorily repudiates. Assume that Mildred sues Vincent and wins on liability. What are Mildred's likely recoverable damages? A. $1.2 million B. $1.55 million C. $420,000 D. $400,000 E. $760,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started