Basic Facts: Robert Sellar is the owner of a house and lot in the residential area of Smalltown. On March 15, Sellar and Bonnie Byer entered into a written agreement by the terms of which Sellar agreed to sell the house and lot ("the Property") to Byer for a total purchase price of $65,000, and Byer agreed to buy the property for that price. By the terms of the Sellar-Byer agreement, the closing title in exchange for payment of the purchase price) was to take place on or about June 15. In addition, the agreement also contained the following language:

It is agreed that this transaction is conditioned on the ability of Byer to obtain by June 1, from the Smalltown Zoning Board, a variance permitting Byer to operate on the premises a drug rehabilitation outpatient clinic, of the type currently operated by Byer in Middleburg [a nearby city].

(a) In March, Byer applies to the zoning board of Smalltown for a variance as described above. The board formally denies that request on May 25. On May 26, Byer notifies Sellar of this fact by letter, and states in her letter, "As you can see, this means that my projected purchase of your property will not take place." On June 20, Sellar sells his property to Frank Fallbach for $60,000. Is Byer liable to Sellar in damages for breach of contract?

(b) In March, Byer makes a preliminary application to the zoning board for a variance as described above. In early April, the board furnishes Byer with a set of application forms and a list of documents to be furnished in order for her application to be processed. Byer never completes and files those forms and other papers. On June 5, Byer advises Sellar by letter that no variance was granted, and states, "As you can see, this means that my projected purchase of your property will not take place." On June 20, Sellar sells his property to Fallbach for $60,000. Is Byer liable to Sellar in damages for breach of contract?

(c) In March, Byer makes a preliminary application to the zoning board for a variance as described above. In early April, the board furnishes Byer with a set of application forms and a list of supporting papers to be furnished in order for her application to be processed. Byer completes the forms and files them with the board, and supplies the board with as many of the requested additional documents as she can. However, one of the papers requested by the board is a written statement from each adjoining landowner, either giving consent to the variance or specifying the reasons for objection. One of the pieces of adjoining land is also owned by Sellar. At Byer's request, Sellar files with the zoning board a written statement. In his statement, however, Sellar states that he does not consent to the requested variance, but strongly opposes it, because of the negative impact such a clinic would in his opinion have on the neighborhood. The Board denies Byer's request on May 25. On June 10, Sellar sells the property to Fallbach for $75,000. Is Sellar liable to Byer in damages for breach of contract?

(d) In March, Byer applies for the zoning variance described above, but her application is denied in early May. In the meantime, Byer has entered into negotiations with Fallbach concerning the Property. On May 25, Byer and Fallbach enter into an agreement whereby Byer agrees to sell the Property to Fallbach for $75,000, closing to take place on June 30. That agreement contains a clause conditioning Byer's obligation to sell on the consummation and closing of her purchase from Sellar on or before June 25. On May 26, Byer writes Sellar requesting that closing of Byer's purchase of the Property take place on June 15, at a specified time and place. On June 10, Sellar notifies Byer by letter that due to Byer's failure to obtain a zoning variance, the Sellar-Byer contract is terminated. On June 15, Sellar sells the property to Fallbach for $70,000. Is anybody liable to anyone else for anything?

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Lets analyze each scenario presented in the four parts of the question a Byers Purchase Not Proceeding Due to Denied Variance In this case Byer applie... View the full answer