Reformation Changes written K to conform with the parties original understanding. Valid K 2. Seller s breach and buyer s breach. Applies after execution but before closing. Risk of loss on buyer after execution, before closing.
Modern trend puts risk of loss on seller unless buyer has possession.
Whoever has risk of loss should get benefit of insurance proceeds. Option K equitable conversion occurs when option is exercised. If fully performed, damages is K price. If partially performed, K price minus costs saved. Cost of completion, minus payments due.