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53. Is the owner likely to succeed in a breach of contract action?
On March 1, an owner entered into a written contract to sell her car to a buyer for $15,000, with delivery and payment to occur on March 6. The buyer had previously declined to enter into an option contract to hold the owner's offer open until March 6. On March 3, the buyer emailed the owner to say that he might not have the $15,000 by March 6. The owner did not respond. On March 4, the owner sold the car to her neighbor for $13,000 and told the buyer that she planned to sue him for breach of contract to recover the difference in the purchase price.
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A is incorrect. The duty of good faith, which imposes on each party a duty of good faith and fair dealing in its performance, did not require the seller to respond to the buyer in this situation.
C is incorrect. The buyer did not overtly communicate an intention not to perform under the contract and did not act in a way that rendered his performance impossible or that demonstrated his determination not to perform. Therefore, the buyer did not anticipatorily repudiate the contract.
D is incorrect. Although an option contract would have made the seller's offer irrevocable, here, the parties had already formed an enforceable contract, and thus the revocability of an option offer became irrelevant.