Investor was considering buying a piece of land that Seller was offering for $80,000, but Investor first
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- Investor was considering buying a piece of land that Seller was offering for $80,000, but Investor first needed to see if he could arrange for a loan.
- Investor paid Seller $1,000 in exchange for Seller's promise to keep the $80,000 offer open for ten (10) days.
- Three (3) days later, Seller sold the land to Buyer for $90,000.
- One (1) day after that, Investor notified Seller that Investor had obtained the loan and wanted to proceed.
- Seller informed Investor that the land was sold, and Seller offered to return the $1,000 to Investor.
- Investor sues Seller for breach of contract.
Which of the following is the most likely outcome of that lawsuit?
Seller should win -- because $1,000 is insufficient consideration to support a $80,000 purchase price.
Investor should win -- because Seller violated a moral obligation and deprived Investor of a material benefit.
Investor should win -- because an Option Contract was formed, making Seller's offer irrevocable during the ten (10) day option period.
Seller should win -- because an Option Contract was formed, giving Seller the option to terminate her offer.
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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