Question

Russ Wyant owned Humble Ranch in Perkins County, South Dakota. Edward Humble, whose parents had previously owned the ranch, was Wyant’s uncle. Humble held a two-year option to buy the ranch. The option included specific conditions. Once it was exercised, the parties had thirty days to enter into a purchase agreement, and the seller could become the buyer’s lender by matching the terms of the proposed financing. After the option was exercised, the parties engaged in lengthy negotiations, but Humble did not respond to Wyant’s proposed purchase agreement nor advise him of available financing terms before the option expired. Six months later, Humble filed a suit against Wyant to enforce the option. Is Humble entitled to specific performance? Explain

Answer 1

Answer: Humble entitled to specific performance or not: Contract Discharge: ... A contractis discharged or terminated when the obligation of all the parties are completed by them respectively, I • he way to terminate a contract is by performance. contractual promises can also be conditional in nature, cies a condition is prefent of a qualification based on future events of a certain event can or non happening • The happening trigger performance obligation of the contract. • Non Satisfaction of event would discharge the obligation of the parties to contract. person E was uncle of person R who has a two year from R. option to buy a ranch

option was accompained with a set of conditims . • once the option was excerside all the conditions should be met • six month after accepting the contract E filed a case aganist R for enforcing the option. In the given case, E accepted the option but the Condition that were after accepting the option, like party had to constitute a purchase agreement with Zodays of acceptance and seller could become lender by matching the financing terms. E although accepted the option but neither responded to the particular purchase agreement for six months nor advise Rfor on any financial terme. It is explained that when a contractual liability is subjected to specific conditions, the party cannot

be made held laable for any performance. "Thus it can be concluded that is not entitled to specific performance. .