Zachary and Carrie Sexton (the Buyers) were searching for a home in the Kings wood neighborhood of


Zachary and Carrie Sexton (the Buyers) were searching for a home in the Kings wood neighborhood of Atlanta, Georgia. The Buyers’ real estate agent learned that Russell and Linda Sewell (the Sellers) planned to place their home up for sale in the near future. Before the Sellers listed the home for sale, the Buyers toured it and offered to purchase it for \($1,775,000.\) The Buyers’ agent drafted a purchase and sales agreement, which the parties executed the same day, March 31, 2017. Alongside signing the agreement, the Buyers put down \($40,000\) in earnest money. The agreement provided a two-week due diligence period, during which the buyers could rescind the contract without incurring a penalty. During that period, the home was appraised for \($1,850,000,\) or \($75,000\) more than the contract price.

On May 13, about one month after the due diligence period had expired, and almost six weeks before the closing date, the Buyers informed the Sellers that they were moving to North Carolina. The Buyers assured the Sellers that they were still interested in purchasing the home, which they would then resell. Thus, the Buyers asked the Sellers to allow them to show the property to other potential buyers. The Sellers allowed the Buyers to show the home on one day, May 17, but no re-sale resulted. The Sellers did not allow the Buyers any additional days to show the home.

On May 22, the Buyers notified the Sellers that they intended to unilaterally terminate the agreement, and they relinquished the \($40,000.

The\) Sellers refused the offer, and the Sellers’s attorney informed the Buyers that if they failed to appear at the closing on June 22, the Sellers would pursue an action seeking specific performance on the contract. Sure enough, the Buyers failed to close the property and the Sellers filed suit. The Sellers prevailed, and the Buyers appealed, arguing that specific performance is an inappropriate remedy in this case.

Is this a case where specific performance can be invoked? How did the appellate court rule?

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Dynamic Business Law

ISBN: 9781260733976

6th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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