How will the parties achieve efficiency in allocating house

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Question: Assume that A values his house at $90,000. B is willing to pay $110,000 for A's house in order to relocate closer to work. (Forget about person C for purposes of this question). After signing a contract, B's employer announces that the company will move to another city. In view of this fact, the value of the house to B is reduced to $75,000. From an efficiency viewpoint, who should own the house, A or B? How will the parties achieve efficiency in allocating the house if the court enforces the contract?

Reference no: EM131908467

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