Question

Martha contracts to buy a home from Logan for $550,000 on a cash basis with no contingency. The day before closing, Martha unexpectedly loses her job. She notifies Logan that she cannot close on the contract and does not close. Logan files suit to recover money damages. He shows that he had costs of $5,000 in the sale to Martha that went for production of survey, title report etc. The home value at the time

Answer 1

Logan is suing Martha for breach of a real estate contract after she could not close on the house purchase due to unexpected job loss. He seeks compensation for the $5,000 he spent on sale preparations. The case involves assessment of contract breach and determining appropriate damages.

Step-by-step explanation:

The question at hand deals with a breach of real estate contract and recovery of damages. Martha entered into a contract with Logan to purchase a home for $550,000 on a cash basis without any contingencies. However, she loses her job the day before closing and informs Logan she cannot proceed with the purchase. Logan, as a result, incurs expenses related to the home sale, including survey and title report costs amounting to $5,000. In suing Martha, Logan seeks to recover these expenses as damages for Martha's failure to close on the agreement.

This scenario highlights contractual obligations and potential financial consequences of failing to fulfill such obligations. Should Logan establish a breach of contract, the court may award him damages intended to put him in the position he would have been if Martha had performed her contractual duties. These damages could include out-of-pocket expenses and any additional losses he incurred due to the breach.