Question

Matthew has a contract to sell a piece of real estate to Betty for $35,000. Betty breaches the contract, and Matthew immediately sells the land to someone else at the best price he can get: $31,000. Matthew can recover: a. specific performance. b. $4,000 as the difference between the market price and the contract price. c. $35,000 as the contract price on the land. d. nothing because he was able to sell the land to someone else.

Answer 1

$4,000 as the difference between the market price and the contract price.

Step-by-step explanation:

The market price of an item is the price at which a customer prices and buys it. It tends to change depending on factors like negotiating power, urgency of sale, perception of the item's worth, among other things.

Matthew has formed a contract to sell a piece of real estate to Betty for $35,000. Betty has breached the contract. But Matthew can enforce it against her.

If Mathew sells the property at market price Betty is liable to make up the balance to meet the contract amount.

Difference between contract price and market price= 35,000 - 31,000= $4,000

So Mathew can recover the balance of $4,000 from Betty