Measuring Damages in Real Estate Contracts

Measuring Damages in Real Estate Contract

Activity 4: Measuring Damages in Real Estate Contract
In March 2013, the New York Court of Appeals issued a decision in the case of White v. Farrell. An edited version of the opinion is available on Blackboard, along with this assignment. Surprisingly, this case the first time the court had been confronted with what appears to be a basic question of contract damages: how to measure a seller’s damages when a buyer breaches a contract to purchase real estate.

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You have been asked by a real estate agency to explain the decision and its implications. Please write a 3-5 page memo responding to the request. Your memo should include a discussion of the following points:

• The standard the court adopted for measuring damages when a buyer breaches a contract to purchase real estate

• The majority’s rationale for adopting this standard

• The practical implications of the decision for parties to real estate transactions

• The alternative approach proposed by the concurring judge, and the reasons the concurring judge disagreed with the majority’s approach

• Your own assessment of the fairness of the majority’s approach

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