Reference no: EM133415821

Assignment:

CASE

Karl and Wilbur were older men who each owned small apartment buildings in the same city. Karl renovated his buildings in his spare time, and he was owed $2,000 by Wilbur for a job. Karl's health was poor and he told Wilbur he wanted to retire. He told Wilbur that he had a mortgage on his building for $300,000, and that he was prepared to sell the building to Wilbur for $500,000. Wilbur did not have access to such money, but by the end of the conversation, Karl and Wilbur agreed that Wilbur would make Karl's mortgage payments, and in four-and-a-half years, when $250,000 in GICs that Wilbur owned came due, Wilbur would pay Karl $245,000 (the $200,000 balance plus some interest) in cash.

Wilbur made the next three monthly trips to the bank, at the end of December, January, and February, paying the appropriate $1,750 on each trip. During that time, the men had discussed Karl's impending retirement. In the first week of March, Karl died, and Karl's executor told Wilbur he knew of the deal, but that it was off. He offered Wilbur a cheque for $3,250, which represented a refund of Wilbur's payments to the bank, less the money Wilbur owed to Karl for renovations. Wilbur refused the cheque, wrote his own cheque to the executor for $2,000 in payment of his repair bill, and told him that he would sue to enforce the deal as the deal was really good for me, and you want to hold out for more cash. The property, independently appraised, was worth $670,000.

Assess the likelihood of Wilbur succeeding in obtaining an order of specific performance, compelling the sale on the agreed terms.