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Halle Agreed to Sell a Piece of Land Called Blackacre

Question 32

Multiple Choice

Halle agreed to sell a piece of land called Blackacre to Justin for $200 000.The sale was scheduled to close on June 1.Under the terms of the contract,Justin paid $10 000 to Halle on May 1.On May 15,however,Halle told Justin that she had changed her mind and that she intended to keep Blackacre for herself.She did so even though the market value of Blackacre had dropped to $150 000.Which of the following statements is TRUE?


A) Specific performance is not available to Justin because the value of the property has decreased.
B) Taking into account the money that he previously paid,Justin is entitled to compensatory damages worth $140 000.
C) Taking into account the money that he previously paid,Justin is entitled to compensatory damages worth $190 000.
D) If Halle refuses to repay the $10 000,Justin can use a vendor's lien to force the sale of Blackacre and to take $10 000 from the sale proceeds.
E) Because he has entered into a bad bargain,Justin should sue for unjust enrichment,rather than breach of contract.

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