This Comment addresses this increasingly common scenario where the developer reneges on reservation agreements and asserts that if certain developer practices remain unchanged, unwary developers will continue to face lawsuits brought by disappointed parties. Although the courts have generally been unsympathetic to contract claims, clearly struggling to find a remedy for plaintiffs in light of the express, nonbinding nature of the agreements, the potential for developer liability nevertheless exists under a theory of unfair and deceptive trade practices. Thus, this Comment asserts that since reservation agreements do not rise to the legal classification of option contracts, developers are justified in terminating reservation agreements with prospective purchasers so long as their cumulative actions do not amount to unfair or deceptive trade practices.
Douglas J. Short, Use Versus Abuse: A Comprehensive Analysis of Nonbinding Reservation Agreements and Real Estate Developers' Ability to Freely Rescind, 30 Campbell L. Rev. 201 (2007).