Case Scenario:
Commercial Properties, Inc. owns and manages several shopping centers. On March 5, 2014, Commercial received from Devon Associates, Inc. a signed letter of interest in purchasing one of the shopping centers owned by Commercial. Devon would pay $30 million for the property and promised not to withdraw that price before April 1, 2014. Devon also specified that it must know Commercial’s decision by April1, 2014. On March 29, Commercial sent Devon a signed agreement for the sale of the shopping center for $30 million. On March 30, before Devon received Commercial’s letter, Devon telephoned Commercial and withdrew its $30 million price. Commercial’s agreement letter was received by Devon on April 1, 2014. Devon refuses to complete the transaction, arguing that it does not have a binding agreement with Commercial, since Devon withdrew from the transaction before the deal was completed. Commercial sued Devon for breach of contract. Who will win the lawsuit? Discuss fully the arguments of both parties.
- Identify the legal issue(s) for the questions, explain the applicable rules of law, and use the facts to reach a decision.