Question

Randy and Candy entered into a contract for Randy to purchase Candy's lakeside property, with acreage. Prior to closing, Candy received a better offer, and told Randy she was terminating. Randy sued her to retain the rights he was promised in the contract.

What is the reason for the discharge of the contract in this scenario?
a) Breach of contract
b) Mutual agreement
c) Duress
d) Unilateral mistake

Answer 1

Candy's attempt to terminate the contract with Randy due to a better offer represents a breach of contract, giving Randy legal grounds to enforce the contract or seek damages.

Step-by-step explanation:

In the scenario provided, Randy and Candy entered into a contract for the sale of a lakeside property. When Candy received a better offer and attempted to terminate the existing contract with Randy, this constituted a breach of contract. The contract represented a binding legal agreement wherein Randy was promised rights to the property in exchange for consideration, likely money. Contracts are fundamentally based on property rights and exist to provide individuals an enforceable legal framework to agree on the use of property. If a party fails to honor such an agreement, like Candy did, the other party, Randy in this case, has recourse through the legal system to enforce the contract or seek damages for the breach. The correct answer to why the contract was discharged in this scenario is (a) Breach of contract.