On January 1, Ichiro Contractually Agreed to Sell a Piece

question 48

Essay

On January 1, Ichiro contractually agreed to sell a piece of land called Blackacre to Mandy for $250 000.The sale was scheduled to close, and the price was expected to be paid in full on December 1.Before that date, however, the value of Blackacre increased to $350 000 because of a general increase in the real property market.Ichiro now refuses to complete the transaction by transferring Blackacre to Mandy.She admits that she wanted to purchase the property for investment purposes only.Nevertheless, she claims that if she does not receive specific performance, she will not enjoy the benefit of the contract.Will a court award specific performance? If not, is there any other way for Mandy to enjoy the benefit of the contract? Explain your answers.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life.

Residual Value

The estimated value of an asset at the end of its useful life, often considered in depreciation calculations.

Depreciation Expense

The cost allocated to reflect the reduction in value of a tangible asset over its useful life, as part of the wear and tear or obsolescence.