Fact Pattern 14-1

question 66

Multiple Choice

Fact Pattern 14-1
Bella Homes enters into a contract to buy 132 acres from Watershed Holdings to subdivide and sell in fifth-acre lots for Pristine Meadow, a residential development.
-Refer to Fact Pattern 14-1. If Watershed breaches the contract, Bella's remedy would most likely be

• A) a certain ratio of the amount that Watershed has in liquidated funds.
• B) a percentage of Watershed's unrealized profit.
• C) the difference between the land's contract and market prices.
• D) specific performance.

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Definitions:

Enforceable

Refers to a legal agreement that can be upheld or compelled in a court of law.

UCC's Statute

A legal guideline adopted to harmonize the law of sales and other commercial transactions across the United States.

Price Term

A condition in a contract specifying the amount to be paid for the goods or services.

Collateral Promise

A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship, such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be in writing to be enforceable.