Topic: Real
Property, Right of first refusal. Contract, Performance and
Breach
(By William Thompson) Appeals Court of Massachusetts,
re-affirmed the principal that an option contract can be exercised only in
strict compliance with its terms. When a third party makes a bona fide offer to
purchase property, an existing right of first refusal evolves into an option to
purchase. The option must be exercised consistently with the terms of the
initial contract or the option is dissolved. Such was the case here, where the
plaintiff made two attempts to exercise his options and twice failed to comply
with the terms. First, he attempted to add a financing contingency. Second, he
withdrew the contingency and attempted to exercise the option but on the
11th day, despite the option being open for only ten days.
Christian vs. Edelin & another, No. 04-P-1391, March
16, (2006)
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