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Georgia purchased an option on Greenacres from Pamela for $ 1 0 , 0 0 0 . The option contract contained a provision by which Georgia promised not to assign the option contract without Pamela's permission. Georgia without Pamela's permission assigned the contract to Michael. Michael now seeks to exercise the option, and Pamela refuses to sell Greenacre to him. Must Pamela sell land to Michael? Explain



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Answer:

In this scenario, Georgia purchased an option on Greenacres from Pamela for $10,000 with a provision that Georgia promised not to assign the option contract without Pamela's permission. However, Georgia assigned the contract to Michael without Pamela's permission, and now Michael seeks to exercise the option, but Pamela refuses to sell Greenacre to him.

In this situation, Pamela is not obligated to sell the land to Michael. The reason being that the assignment of the option contract by Georgia to Michael without Pamela's permission violates the provision stated in the contract. By assigning the contract to Michael without obtaining Pamela's permission, Georgia breached the terms of the contract, specifically the provision that restricted assignment without permission.

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