Breach of Real Property Sales Agreement and Specific Performance

The case concerned a dispute arising from the breach of a promise to sell real property, where the promisor subsequently sold the property to a third party after the promisee had formally notified the promisor of their intent to exercise the option to purchase. The court held that the subsequent sale to the third party, even if the third party was acting in good faith, did not extinguish the promisee's right to claim specific performance or damages, as the promise constituted a binding obligation upon the promisor; consequently, the original seller was liable for the consequences of breaching the sales agreement.