Problem
Review the scenario provided and answer the following questions:
Andy purchased a one-acre tract of land with an ocean view from Bob for $1,000,000. One hour before escrow closes on the deal, Charlie, who knows of the pending sale to Andy, offers Bob $2,000,000 for the one-acre tract of land and Bob accepts. One hour later when escrow closes, Bob informs Andy that the sale cannot go forward because the property has been sold to Charlie.
a) Explain why a breach of contract occurred and identify who is the party at fault.
b) Choose the remedy that is most appropriate to help the non-breaching party.
c) Compare and contrast mediation versus arbitration as the best way to resolve this dispute. Justify the response.