Business Ethics Genaro Munoz owned property that he leased to Goodwest Rubber Co

Question

Business Ethics Genaro Munoz owned property that he leased to Goodwest Rubber Corporation (Goodwest) for five years. The lease granted Goodwest the option to buy the property at a fair market value. Goodwest sought to exercise the option to purchase the property and tendered $80,000 to Munoz. When Munoz rejected this offer, Goodwest filed suit, seeking specific performance of the option agreement. The court was presented with a single issue for review: Was a price designation of “fair market value” definite enough to support an action for specific performance? Do you think Munoz acted ethically in refusing to honor the option? Who wins? Goodwest Rubber Corp. v. Munoz, 170 Cal.App.3d 919, 216 Cal.Rptr. 604, Web 1985 Cal.App. Lexis 2288 (Court of Appeal of Californi

Explanation / Answer

According To The Jurdication of general agreement that "fair market value," "reasonable value," or "current market value," are sufficiently certain price terms to support specific performance of an option

Munoz should ot have rejected this offer as genaro has presented to sell at fair m,arket value

in this case the munoz cant do the specific performance

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