On September 10th, Ellen and Cathy entered a contract for Ellen to purchase property from Cathy.
On September 10th, Ellen and Cathy entered a contract for Ellen to purchase property from Cathy. Cathy’s property has an old, run down motel on it and Ellen plans on renovating and reopening the motel. She hopes that it will be a success and bring many new vacationers to the region. Ellen also owns a restaurant in the local town and hopes that the motel will help increase business to her restaurant. Ellen is supposed to take ownership of the property on December 1st. Marco lives near Cathy’s property and learns that the motel and property have been sold. He is very happy to learn that the motel will be renovated and reopen. He has a winery on his property and was hoping to open a wine tasting room to help him sell his wine to tourists. He thinks that the motel will help increase traffic to his business. He wants to be able to handle all the new customers once the motel reopens, so he spends thousands of dollars to add a wine tasting room to his winery Unfortunately for Marco, Ellen changed her mind and refused to purchase the property from Cathy. Marco now will not get the extra business he was expecting with the reopening of the motel. He wants to sue Ellen in breach of contract. Explain Marco’s rights in this situation. Your answer should include reasons, citing contract law principles. [4 marks]
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