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Samantha signs a contract to buy a brand-new unit in Kogarah. The contract is subject...

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Accounting

Samantha signs a contract to buy a brand-new unit in Kogarah. The contract is subject to

an extended settlement period of 120 days. Samantha, through her solicitor, transfers the 10% deposit to the vendors solicitor and then speaks with her mortgage broker about obtaining a loan.

While all this is going on, Samantha sells her own unit in Oatley. She intends to use the

money realised from the sale of the Oatley unit to pay the balance of the purchase price

of the Kogarah unit.

A problem arises when Samanthas unit does not sell by the expected date. Samantha needed to secure short-termfinance at an almost exorbitant interest rate just so she can buy the Kogarah unit. Samantha consults her solicitor, who advises her that she can sue the buyer of her Oatley unit for breach of contract and ask for damages including the additional interest charges sheincurred. Is Samanthas solicitor correct? Explain your answer. (Maximum 150 words)

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