The correct answer is: (D) The retail chain may seek specific performance, because the owner refused to close.
Specific performance is a classic contract remedy where land is concerned, because land is considered unique, and monetary damages may not be enough to adequately compensate injured parties. Here, given that the owner refused to close on the house as agreed, the retail chain may seek specific performance.
(A) Incorrect. The retail chain can sue for specific enforcement and monetary damages, because the owner breached the contract.
Under the doctrine of election of remedies, the retail chain may sue for specific performance or damages--not both. Specific performance is a classic contract remedy where land is concerned, because land is considered unique, and as such, monetary damages may not be enough to adequately compensate injured parties. Here, given that the owner refused to close on the house as agreed, the retail chain may seek specific performance. In the alternative, it may seek monetary damages.
(B) Incorrect. The retail chain must wait until closing before suing, because it does not want to be in breach.
The breach has already occurred, by virtue of the owner's refusal to close on the house. As such, the retail chain need not concern itself with being in breach of contract; rather, it ought now consider election of remedies. Under the doctrine of election of remedies, the retail chain may sue for specific performance or damages--not both. Specific performance is a classic contract remedy where land is concerned, because land is considered unique, and as such, monetary damages may not be enough to adequately compensate injured parties. Here, given that the owner refused to close on the house as agreed, the retail chain may seek specific performance. In the alternative, it may seek monetary damages.
(C) Incorrect. The retail chain must pay the owner twice the agreed amount for the owner's house, because the retail chain tried to defraud the owner, and the court will not aid and abet the chain's fraud.
It is not illegal to use a proxy to purchase property, especially because there is no indication here that the owner was defrauded. In fact, the owner appeared to be satisfied with the offer he received from the real estate professional, until he learned that he could possibly have gotten more. As such, the retail chain need not increase the amount it offered for the house. The retail chain may also sue for specific performance (a classic remedy in contract cases involving the sale of land) or, in the alternative, money damages.
