On April 10,Mel Entered into a Contract to Sell His

question 85

Essay

On April 10,Mel entered into a contract to sell his house to Nan at a price of $300 000.Title was to transfer May 31.Nan paid Mel a deposit of $20 000.A clause in the contract between them said: "If the buyer does not complete as specified,the seller can elect to keep the deposit as liquidated damages." On April 30,Nan told Mel she could not complete the contract because she could not sell her own house.Mel immediately entered into a contract to sell his house to Paul for $320 000.Nan insists that Mel return her deposit because he has suffered no damages.Will a court order Mel to return her deposit?

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Definitions:

Technological Innovation

The development and application of new technologies and ideas to improve goods, services, or processes, enhancing efficiency or value.

Output

Total quantity of a product or service produced within a given timeframe, reflecting the overall production capacity.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services.

Pure Competition

A market setup where numerous small companies manufacture the same products without any one of them having the power to affect the market pricing.