Specific Performance Against Second Purchaser with Notice of Prior Agreement

A seller, having signed a preliminary sale agreement with a purchaser for a property, later contracted to sell the same property to a third party who was fully aware of the prior agreement. The initial purchaser sued to have the second sale declared null and void, seeking transfer of ownership, and the lower court sided with the initial purchaser. The reviewing court upheld the decision, reasoning that the second purchaser, having full knowledge of the contractual commitment to the first party, acted in bad faith by completing the transaction, thereby allowing the first purchaser to demand either nullification of the subsequent sale or specific performance of the original contract.