Nature of the Case
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Facts
P contracted with D to purchase a residential lot and single family home to be constructed. The purchase price was $105,690.00. P placed a $10,568.00 deposit on the property. Closing was projected for “Winter 1978-79” but did not take place until late summer 1980 due to construction delays. The contract stated that closing was to occur after ten days written notice from D to P. P got her notice and immediately sought financing to purchase the property. P was unable to acquire the necessary financing within the time required. P's attorney requested additional time within which to pay the balance due on the property. Taking the position that time was of the essence, D refused. D resold the property for $170,000.00. P sued, and the trial court found that D failed to exercise good faith by refusing P a reasonable time to close and by terminating the contract. P was awarded “benefit of bargain” damages of $64,310.00 together with prejudgment interest of $43,295.38. The Court of Appeal affirmed the judgment and damages award, holding the “award of damages to a contractual vendee [includes] the profit made by the vendor on the sale of the property to a subsequent purchaser even though there is no proof of fraud or bad faith.” D appealed.
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