Question

Charles, a real estate developer, and Mabel enter into an agreement for the sale of certain land that Mabel inherited from her father. The land is undeveloped but zoned for residential development. Settlement on the sale is scheduled for June 1. Mabel, however, has been unable to secure clear title to the land because of a dispute with the other heirs to her father's estate, and does not appear for the settlement. After Charles' attorney sends several letters to Mabel concerning the sale to which she does not respond, Charles files a lawsuit against Mabel for breach of contract. Which, if any, of the following are remedies that Charles may obtain against Mabel for failing to perform her obligations under the agreement?

Answer 1

Charles may be able to obtain the following remedies against Mabel for her failure to perform her obligations under the agreement:

1. Specific Performance: Charles may ask the court to order Mabel to transfer clear title to the land to him so that he can proceed with the agreed-upon sale.

2. Damages: Charles may seek monetary damages to compensate him for any losses he incurs as a result of Mabel's breach, such as the costs he incurred in preparing for the sale, lost profits, and any other expenses.

3. Rescission: Charles may ask the court to rescind or cancel the contract, effectively returning the parties to their pre-contractual positions. This remedy may be appropriate if Mabel's breach was so fundamental that it effectively destroyed the purpose of the agreement.