A seller in Colorado accepted an offer on her home. Before closing, she received a significantly higher offer and secretly accepted it, transferring the property to the second buyer. The first buyer's contract was still active and no contingencies remained unsatisfied. The first buyer sues. Under Colorado law, which legal theory most directly supports the first buyer's claim against the seller?
Correct Answer
B) Breach of contract, supporting a claim for specific performance or actual damages
The seller's conveyance of the property to a second buyer while the first buyer's contract was still active and all contingencies were satisfied constitutes a clear breach of contract. The first buyer's most direct legal theory is breach of contract, supporting remedies of specific performance (if the property can be recovered) or actual damages (including any increased cost to purchase a comparable property). This is the foundational contract law remedy in Colorado.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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