Question

Sam has contracted with dave to purchase dave's racing bike, with payment and delivery of the bicycle to be in 10 days. three days later sam hears that dave is going to sell the bike to gene in three days at a higher price. if sam really wants the bike, what should he do?

Answer 1

He should remind Dave about the racing bike purchase contract if he really wants the bike. The action can be done if there was a binding clause in the contract which binds Sam as the only buyer. Sam has a better option which is to sell the contract to Gene with a price higher than the first price but lower than the last price in order to gain a return from the bike purchase contract.