Vallas cancelled the contract. The next day, REA brought a breach of contract action seeking specific performance. Explain whether REA is entitled to specific performance.

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Vallas cancelled the contract. The next day, REA brought a breach of contract action seeking specific performance. Explain whether REA is entitled to specific performance.

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Real Estate Analytics, LLC (REA), a limited liability company, became interested in Theodore Tee Vallas’s 14.13-acre Lanikai Lane property located in Carlsbad, California. REA’s primary goal in purchasing the property was to make a profit for its investors and the company. In March, REA and Vallas entered into a written agreement for Vallas to sell the property to REA. Under the agreement, the sales price was $8.5 million, with REA to pay an immediate $100,000 deposit and then pay $2.9 million at closing. In return, Vallas agreed to finance the remaining $5.5 million, with the unpaid balance to be paid over a five-year period. On June 14, Vallas cancelled the contract. The next day, REA brought a breach of contract action seeking specific performance. Explain whether REA is entitled to specific performance.

Explanation & AnswerSolution by a verified expert

Explanation

The element of the insufficiency of lawful remedy is not fulfilled by Company R because Company R wanted to buy the property for investment purpose and not for any other specific use. The damage reward may be considered generally as a poor remedy for the violation of a real estate contract. The courts generally allow an accuser's appeal for a particular execution. Jurisdictions generally have rules that require unique treatment of sale of land agreements,depicting that each land is unique. There can be no sufficient substitute after a violation and the financial damages may be difficult to assess when a party declines to complete an agreement of sale of land.

Verified Answer

Here,Company R may be authorized to a particular execution. To procure a determined performance after the violation of agreement, an accuser may generally show certain conditions.
In the given case, the trial court has rejected the agreement,on the basis of its findings that the first factor regarding the inadequacy of legal remedy is not satisfied by Company R. But the court has granted permission for a particular execution since the damage reward may prove to be insufficient in case of the violation of contract.

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