Build condominium buildings on two adjacent

Assignment Help Business Law and Ethics

Reference no: EM132842268

Legal Scenario

A property developer, Crest Condominiums Ltd., planned to build two condominium buildings on two adjacent (side-by-side) properties. In 2008, before either building was constructed, Mr. Chow looked at plans of units in both buildings and was considering buying a unit in the first building with a completion date in early 2010. Crest's sales representative told him the cost of units in the second building, which was to begin construction later in 2010, would be much higher. He assured him the re-sale value of units in the first building would rise as a result of the higher property values of the same units in the second building. He further assured him that both condominiums were part of a "prestigious project." Upon learning these details, Mr. Chow had decided to purchase a condominium unit in the first building. In the contract of purchase and sale of the unit in the first building, no reference was made to the second building.

After the first building had been completed in 2010, Mr. Chow took possession of the property. Shortly after possession, the local economy went into a recession and so the second building was never built. Instead, the land was sold to an owner who constructed low-income townhouses there in 2012. This dramatically reduced the re-sale value of Mr. Chow's unit. Later in 2012, Mr. Chow demanded his contract with Crest Condominiums Ltd. be rescinded. Crest Condominiums Ltd. refused to give Mr. Chow his money back. Mr. Chow decided to take legal action against Crest Condominiums Ltd. in 2013.

Instructions

Your factual analysis should focus on Chow's legal case. Your answer should discuss:

1. Case Name (who is suing who)

2. The main legal issue (legal concept that applies),

3. Reasoning (legal discussion/description as it applies to the case), and

4. Risk Reduction strategies

Attachment:- Legal case.rar

Reference no: EM132842268

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