Susan enters into an unconditional agreement of purchase and sale to buy a home owned by Alicia.The deal is scheduled to close on September 1.On June 10,less than three months prior to closing,Susan writes a letter to Alicia indicating that she has changed her mind and will not be buying her house.In these circumstances,the most likely scenario is for Alicia to :
A)treat the letter as constituting an anticipatory breach,treat the contract as discharged,and place the home back on the market reserving her rights to sue Susan.
B)seek a court injunction forcing Susan to close on September 1.
C)seek no court action because the contract is frustrated.
D)commence a lawsuit immediately for punitive damages.
E)sue the listing agent for failing to secure a larger deposit.

Question

Quizplus · Accepted Answer

Susan's letter indicates that she has no intention of fulfilling her obligations under the contract on the closing date. This is an anticipatory breach that allows Alicia to treat the contract as discharged and place the home back on the market. Alicia may also choose to reserve her rights to sue Susan for any damages resulting from the breach. Option B is unlikely, as a court would not force someone to buy a home they no longer want. Option C, frustration, does not apply because the contract was not impossible to perform; Susan simply chose not to perform. Option D, suing for punitive damages, is not appropriate in this situation. Option E, suing the listing agent for the deposit, is also not relevant as this scenario does not involve a dispute over the deposit.

Susan Enters into an Unconditional Agreement of Purchase and Sale