Thomas Magee agreed to sell to Kristina Severance a house in the Town of Brookhaven in Suffolk County New York for $457,000. The sale was supposed to be closed by August 15. The contract included a provision that if Seller is unable to convey good, clear, insurable, and marketable title, Buyer shall have the option to (a) accept such title as Seller is able to convey without reduction of the Purchase Price, or (b) cancel this Agreement and receive a return of all Deposits. An examination of the public records revealed that the house did not have marketable title. Severance offered Magee additional time to resolve the problem, and the closing did not occur as scheduled. Magee decided that the deal was over and offered to return the deposit. Severance refused and, in mid-October, decided to exercise her option to accept the house without marketable title. She notified Magee, who did not respond. She then filed a lawsuit against Magee in a state court. Answer the following two questions: 1. Discuss whether Magee has breached the contract and will decide in whose favor the court should rule. 2. Discuss the alternative view and assume that Magee did breach the contract and determine what the appropriate remedy is in this situation.
