Question

This is only one question the top part is the narrative and part a is the question , and its for finance

10. (50 Points, Total, for this Question) – After much recent success in the industry,” local entrepreneur Diana “Di” Rector wished to sell her $3 Million three-bedroom Santa Monica home and purchase a new six-bedroom and guest house Beverly Hills estate priced at $10 Million. To sell her "old" house, Di entered into a residential real estate sales agreement (the “Sales Agreement”) with Ann Genue, an up-and-coming actor and starred of a blockbuster comics superhero movie, but a novice in real estate. Along with other language, the parties' signed, written contract contained the following language printed in a separate paragraph of large, bold type and separately initialed by Di and Ann: "IF EITHER PARTY BREACHES THIS AGREEMENT BY PREVENTING OR FAILING TO COMPLETE THE SALE/PURCHASE OF THE PROPERTY WITHOUT PROPER JUSTIFICATION OR EXCUSE UNDER THE TERMS OF THIS AGREEMENT, THE NON-BREACHING PARTY SHALL BE PAID THE SUM OF NINETY THOUSAND AND NO/100 DOLLARS ($90,000.00).” Ann was anxious to purchase Di's home, because, despite recent concerns about an upcoming downturn in the Southern California real estate market, properties north of Montana Avenue in Santa Monica had continued to appreciate in value; Ann was afraid of being “cut out”/priced out of the market. Even so, at the time that Di and Ann executed their Sales Agreement, largely due to political uncertainties, including those surrounding “neighborhood preservation” and Building Department refusals to grant building permits for large new “McMansions” (opulent houses with thousands of square feet of space built close to the property lines) on smaller lots, there were uncertainties in the market even for these Santa Monica homes. Thus, it was extremely difficult, if not impossible, to predict what might happen to the marketability and/or sale price of Di's "old" home over the next year. Nevertheless, most residential real estate agreements provided for forfeiture of the buyer's initial deposit (frequently between one per cent (1%) and five per cent (3%) of the total sale price), if the buyer backed out of the sale without good cause/legal excuse.

Answer 1

Type of Damages: Consequential Damages:

Three Requirements:

1) Initial Deposits

2) No Proper Justification with Data.

3) Legal Obligation of $90000 gainst Breach of Contract.

Ann's has to paid $90000 to Dias against this breach of contract according to Sale Purchase agreement rules Though Di's incurrect acctual loss of $1,95,000 but she will get only $90000

Answer 2

Type of Damages: Consequential Damages:

Three Requirements:

1) Initial Deposits

2) No Proper Justification with Data.

3) Legal Obligation of $90000 gainst Breach of Contract.

Ann's has to paid $90000 to Dias against this breach of contract according to Sale Purchase agreement rules Though Di's incurrect acctual loss of $1,95,000 but she will get only $90000