Michael seeks to exercise the option, and Pamela refuses to sell Greenacre to him. Must Pamela sell the land to Michael? Explain.
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Georgia purchased an option on Greenacre from Pamela for $10,000. The option contract contained a provision by which Georgia promised not to assign the option contract without Pamela’s permission. Georgia, without Pamela’s permission, assigns the contract to Michael. Michael seeks to exercise the option, and Pamela refuses to sell Greenacre to him. Must Pamela sell the land to Michael? Explain. |
Explanation
Yes, the property is going to be sold to Individual M since the contract is not issued with depraved intentions. This action entitles the obligor to gain from the damages because there is a breach in the terms and conditions of the assignment. However, the contract is enforceable.
So, the contract is liable for the assignment and is considered valid. However, as Individual G assigned the contract without the approval of Individual P, Individual G has broken the contract and is liable to Individual P for damages incurred by the assignment, if any.
Verified Answer
Yes, the land can be sold to Individual M since the provision of the contract is not made with depraved intentions. It makes the obligor entitled to penalties for the violation of the provisions preventing the assignment but does not make the assignment unsuccessful.
