Linnea contracts to buy Harriette's farm for $300,000 and puts $20,000 down. Then Linnea learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm one month later for $290,000, she may:

Since Linnea repudiated the contract, it is considered a breach. Therefore, Harriette is entitled to compensatory damages for the breach of the contract. Compensatory damages only cover the lost revenue from the contract, so if Harriette was able to sell her farm and only lost $10,000 due to Linnea's breach, then she must return the difference = $20,000 - $10,000 (lost) = $10,000.

abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2021-12-10T11:45:15+01:00

If Harriette can sell the farm one month later for $290,000, she may: B) keep $10,000 of Linnea's down payment.

Using this formula

Down payment=Amount put down-(Cost of farm-Selling price)

Where:

Amount put down=$20,000

Cost of farm=$300,000

Selling price=$290,000

Let plug in the formula

Down payment=$20,000-($300,000-$290,000)

Down payment=$20,000-$10,000

Down payment=$10,000

Inconclusion If Harriette can sell the farm one month later for $290,000, she may: B) keep $10,000 of Linnea's down payment.

Learn more about down payment here:https://brainly.com/question/25402993