Case Problem:
On February 1, 2004, Zhang entered into a contract to buy former realtor Frank Sorichetti’s Las Vegas home for $ 532,500. The contract listed a March closing date and a few household furnishings as part of the sale. On February 3, Sorichetti told Zhang that he was terminating the sale “ to stay in the house a little longer” and that Nevada law allows the rescission of real property purchase agreements within three days of contracting. Sorichetti stated that he would sell the home, however, if Zhang paid more money. Zhang agreed. Another contract was drafted, reciting a new sales price, $ 578,000. This contract added to the included household furnishings drapes that were not listed in the February 1 agreement, and it set an April, rather than March, closing date. The primary issue before the court was whether a real property purchase agreement is enforceable when it is executed by the buyer only because the seller would not perform under an earlier purchase agreement for a lesser price. Should the court enforce the second contract? Why or why not?
[ Zhang v. The Eighth Judicial District Court of the State of Nevada, 103 P. 3d 20 ( Sup. Ct. Nev. 2004).]