Fact Pattern 18-B1
A enters into a contract to buy 132 acres from B to subdivide and sell in quarter-acre lots for C Acres, a residential development.
-Refer to Fact Pattern 18-B1. If B breaches the contract, A's remedy would most likely be
A) a certain ratio of the amount that A has in liquid funds.
B) a percentage of A's unrealized profit.
C) the difference between the land's contract and market prices.
D) specific performance.

Question

Fact Pattern 18-B1 
A enters into a contract to buy 132 acres from B to subdivide and sell in quarter-acre lots for C Acres, a residential development.
-Refer to Fact Pattern 18-B1. If B breaches the contract, A's remedy would most likely be
A) a certain ratio of the amount that A has in liquid funds.
B) a percentage of A's unrealized profit.
C) the difference between the land's contract and market prices.
D) specific performance.

Quizplus · Accepted Answer

A's main purpose in entering into the contract with B was to use the land for a specific purpose, i.e. to subdivide and sell in quarter-acre lots. Therefore, A's most likely remedy for B's breach of contract would be specific performance, which would require B to deliver the 132 acres as promised in the contract. Other remedies such as monetary damages would not be sufficient as they would not allow A to achieve their original purpose for purchasing the land.