Facts: Mr. Smith gives Ms Jones a check for $5000 as option to purchase her land

Question

Facts: Mr. Smith gives Ms Jones a check for $5000 as option to purchase her land located in Napa Valley - both parties sign the option to buy contract - Ms Jones accepts the check for $5000 as an option to buy her land. Ms Jones agreed to sell to Mr. Smith her 2 acre commercial lot for $300,000. Mr. Smith has 90 days to exercise his option to purchase Ms Jones property at her asking price of $300,000.

QUESTION: Assuming Ms. Jones, during the 90 day option, sells the property to the ABC Corporation - what legal recourse, if any, does Mr. Smith have?

Explanation / Answer

Both Mr. Smith and Ms Jones sign the option to buy contract. Ms. Jones gives 90 days’ time to give the money for purchase the land but Ms. Jones gives land to ABC party and breaches the contract which they have signed. When an individual breaches a contract, the other party is entitled to relief under the law. The main remedies for a breach of contract are:

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