If the buyer tenders the purchase money on the due date, what can the trustee in bankruptcy do?

• A. The trustee may accept the money and complete
• B. The trustee may discharge the contract
• C. The trustee may compel the seller to complete
• D. The trustee may forfeit the deposit

Answer: (C)

When a buyer becomes bankrupt, the trustee has the option to affirm or repudiate contracts for sale of land. If the purchaser tenders the purchase money on the due date, the trustee has a strong basis to push for performance of the contract so that the sale completes and the title passes. The appropriate course is to apply to the court to compel the seller to complete the conveyance, ensuring the purchase money goes into the estate for creditors. This preserves the asset and maximizes return for creditors, rather than discharging the contract, forfeiting deposits, or accepting money without ensuring completion.