28. Who will likely prevail?

The investor has sued the owner for specific performance.

Wishing to avoid a lawsuit, the buyer assigned the contract (which the contract did not forbid) in an arm's-length transaction to an investor, who is experienced in buying and selling real estate. The investor paid the buyer $25,000. The investor knew of the owner's refusal to close, and the owner continued to refuse to close despite the investor's demands that he do so.

An owner of land contracted to sell it to a buyer for $100,000, its fair market value at that time. After an unanticipated zoning change increased the land's fair market value to $150,000 during the executory period, the owner refused to close.

The investor, because an assignee of the original party purchaser in a real estate contract is entitled to specific performance under these circumstances
The investor, because she has elected to waive the owner’s lack of marketable title caused by the zoning change
The owner, because the investor is not a bona fide assignee without notice, and thus does not have clean hands
The owner, because the investor, who is experienced in buying and selling real estate, is entitled to money damages but not to specific performance

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28. Who will likely prevail?

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