Hypos for Real Estate Contract Breach

Hypos for real estate contract breach 1. Homebuilder sells for principal residence

a. residence; thatched roof (plastic sheeting/big canvas tent) covered by ashphalt shingles

i. original buyer

ii. downstream buyer

b. Residence; natural gas heating system

i. 25 years passes

ii. Everyone has moved to combination of solar panels and fuel cells

iii. Claim breach of warranty

iv. Downstream buyer

c. Residence with “convertible” (retractable canvas roof)

i. Original buyer

ii. Downstream buyer

2. buyer breach

a. price falls

i. 800K contract, sell 1 year later for 700K; seller seeks

1. $100K actual damages

2. mortgage interest for one year

3. punitive ds

4. TV ads, Google ad words

5. Out of work sister stays there, stipend for 5K per month

6. offset $80K deposit?

ii. 800K contract, buyer thinks prices will fall further, they actually go up; sell 1 year later for $1 million

1. may seller keep $80K deposit? 2. May buyer change her mind for the second time?