Before closing on a cottage, a fire destroys the property due to a lightning strike. The jurisdiction has not adopted the Uniform Vendor and Purchaser Risk Act. If the seller seeks specific performance, may the buyer rescind the contract?

Before closing on a cottage, a fire destroys the property due to a lightning strike. The jurisdiction has not adopted the Uniform Vendor and Purchaser Risk Act. If the seller seeks specific performance, may the buyer rescind the contract?

• A. No, because the buyer bears the risk of loss.
• B. Yes, because the seller must give the buyer credit against the purchase price for insurance proceeds.
• C. Yes, because the buyer can obtain a new contract at the same price.
• D. Yes, but the buyer must reimburse the seller for the cost of casualty insurance.

Answer: (B)