Patricia enters into a contract to purchase David's house in Rochester. The contract includes a clause stating 'Time is of the essence.' Patricia's attorney requests a three-day extension for the closing due to a bank delay. David refuses and declares Patricia in breach when she doesn't close on the specified date. Under New York law, what is the most likely result?
Correct Answer
D) The court may grant Patricia relief if the delay was reasonable and not her fault
Even with a 'time is of the essence' clause, New York courts may provide equitable relief if the delay is brief, reasonable, and caused by circumstances beyond the buyer's control (such as legitimate bank processing delays). Courts balance the strict contractual language against principles of fairness.
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James signs a purchase contract for a house in Buffalo on Monday. On Wednesday, he changes his mind and wants to cancel. The contract contains no contingencies or right of rescission. Under New York law, what are James's options?