Racicky was in the process of buying 320 acres of ranchland. While that sale was being negotiated, Racicky signed a contract to sell the land to Simon. Simon paid $144,000, the full price of the land. But Racicky went bankrupt before he could complete the purchase of the land, let alone its sale. Which of these remedies should Simon seek: expectation, restitution, specific performance, or reformation?

Question

Brock

Business

2 July, 17:01

Racicky was in the process of buying 320 acres of ranchland. While that sale was being negotiated, Racicky signed a contract to sell the land to Simon. Simon paid $144,000, the full price of the land. But Racicky went bankrupt before he could complete the purchase of the land, let alone its sale. Which of these remedies should Simon seek: expectation, restitution, specific performance, or reformation?

+5

Answers (1)

Know the Answer?

Christine Erickson · Answer 1

The correct answer here is Restitution.

Explanation:

The remedy which is available here to Simon is restitution (termed as Restitutionary damages), according to this remedy a injured party (Simon in this case) would be compensated for the losses or damage that he has suffered because of the actions of the defendant (Racicky in this case). So here Racicky has to submit any gain that he has received by causing damage to the Simon.

Here expectation can't be the answer because Racicky is now bankrupt and specific performance can't be the answer because Racicky is not the owner of the land, he hasn't bought it because he has gone bankrupt.