In Jacksonville, a commercial property seller breaches a contract after the buyer has spent $25,000 on due diligence, including environmental studies and surveys. The buyer cannot find a comparable property and the breached property has appreciated $100,000. What damages can the buyer likely recover in Florida?

Correct Answer

D) The $25,000 expenses and possibly specific performance

Correct: D - The $25,000 expenses and possibly specific performance. The buyer can recover out-of-pocket expenses incurred in reasonable reliance on the contract, and since the property is unique (no comparable available), specific performance is likely the primary remedy rather than monetary damages for appreciation. Why not A: This option is incorrect because "The $100,000 appreciation plus $25,000 expenses" does not match the rule tested by the question. The correct answer is "The $25,000 expenses and possibly specific performance". The buyer can recover out-of-pocket expenses incurred in reasonable reliance on the contract, and since the property is unique (no comparable available), specific performance is likely the primary remedy rather than monetary damages for appreciation. Why not B: This option is incorrect because "Nothing, because commercial contracts have different rules" does not match the rule tested by the question. The correct answer is "The $25,000 expenses and possibly specific performance". The buyer can recover out-of-pocket expenses incurred in reasonable reliance on the contract, and since the property is unique (no comparable available), specific performance is likely the primary remedy rather than monetary damages for appreciation. Why not C: This option is incorrect because "Only the $25,000 in out-of-pocket expenses" does not match the rule tested by the question. The correct answer is "The $25,000 expenses and possibly specific performance". The buyer can recover out-of-pocket expenses incurred in reasonable reliance on the contract, and since the property is unique (no comparable available), specific performance is likely the primary remedy rather than monetary damages for appreciation.