Dysart v. Cummings
North Carolina Court of Appeals
640 S.E.2d 832 (2007)
The Dysarts' (plaintiffs') contract to buy the Cummingses' (defendants') house let them cancel and recoup their deposit if a reasonable repair-cost estimate reached $10,000 within a 14-day inspection window, and after their inspector found significant foundational damage and a structural engineer estimated repairs above that threshold, the Dysarts timely faxed notice of termination within the window; the Cummings then relisted the house and hired their own contractor, who completed the repairs for under $10,000, and refused to return the deposit, prompting the Dysarts' breach-of-contract suit and the trial court's grant of summary judgment in their favor.
Whether a discretionary right provided by a contract must be exercised reasonably and fairly so as to not affect the other party's rights in bad faith.