Case Problem:
In October 2002, real estate developer Lotus Property entered into a contract with the Greers to purchase 148 acres of land. The contract contained a section entitled “Other Terms,” which included the following statement: “Property shall be granted a zoning by the Henry County Board of Commissioners.” Further, the contract was contingent upon Lotus obtaining sufficient financing and securing sewage easements to run sewage pipes to the property. The closing date under the contract was to be on or before January 10, 2003. In November 2002, the Greers sent a request to the Henry County Planning Commission asking it to rezone the property, and the Greers authorized an officer of Lotus to represent them at the commission’s hearing. By early January 2003, however, the county had not approved the rezoning request. Further, Lotus had not yet secured financing for the project, obtained the sewage easements, or applied for any building permits. On January 9, 2003, the day before the sales contract expired, the parties signed an extension of the contract allowing Lotus to close on the property “on or before 30 days after rezoning has been approved” by the county. It is undisputed that Lotus did not pay any additional compensation to the Greers in exchange for the execution of the extension agreement. It is also undisputed that Lotus was not ready and willing to close on the property on or before January 10, 2003, because the property had not been rezoned. Was this a valid modification of the contract?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.