Court of Chancery Holds Breach Of Material Term Renders Contract Voidable At Option Of Seller Without Notice
DeMarie v. Neff, C.A. No. 2077-S, 2005 WL 89403 (Del. Ch. Jan. 12, 2005).
This post-trial letter opinion involved plaintiff's request for specific performance of an agreement to sell land.
Plaintiff sought specific performance of an agreement to sell land. The plaintiff had failed to pay $1,000 deposit required by that agreement.
The court examined whether the failure to pay the deposit when the transaction was worth over $400,000, measured up to a "[s]ubstantial failure to live up to the material terms of a valid contract" such that it would nullify the contract. In reaching the conclusion that it did in this case, the court examined copious authorities discussing contract avoidance due to material breaches.