Our client entered into a purchase agreement to buy a home, intending to renovate and sell it for a profit. Despite the binding agreement, the seller refused to proceed with the transaction. This breach of contract left our client without the property they needed for their business and caused them to miss out on a significant financial opportunity.
The seller’s failure to honor the agreement not only violated their contractual obligations but also jeopardized our client’s planned investment strategy.
Legal Issues Involved
This case raised several important legal questions and procedural hurdles:
- Breach of Contract: The seller’s refusal to follow through on the purchase agreement was a clear violation of Michigan contract law, requiring us to prove the enforceability of the agreement and the seller’s breach.
- Election of Remedies: This case provided a situation where we could attempt to enforce the terms of the purchase agreement and force the seller to sell the property to our client, which is an equitable remedy called specific performance. Alternatively, we could proceed by seeking our client’s damages and requesting a judgment for that amount. The facts of this case made seeking damages the best way to achieving our client’s objectives.
- Default Judgment: The seller’s failure to respond in the litigation process allowed us to move for default judgment, but it was still necessary to demonstrate the validity of our client’s claims and quantify damages.
- Evidentiary Burden: At the evidentiary hearing, we had to establish the profits our client reasonably would have earned if the agreement had been honored, using detailed calculations and market data to substantiate the claim.
These issues required a thorough understanding of real estate law, contract principles, and evidentiary standards to achieve the best outcome for our client.
The Outcome
As a result of our efforts, the court awarded our client a 5-figure judgment representing the lost profit they would have earned from flipping the home. This judgment not only compensated our client for their financial loss but also reinforced the importance of holding parties accountable to their contractual commitments.
What This Means for You
This case highlights our firm’s ability to protect clients’ financial interests and pursue justice when agreements are breached. Whether you are a real estate investor, homebuyer, or seller, ensuring that contracts are honored is critical to achieving your goals.
Contact Us for Help
If you’ve been impacted by a breach of contract or other real estate dispute, don’t hesitate to reach out. Contact us today to schedule a consultation. We’re here to help you protect your investments and achieve the justice you deserve.