Garrett J. Prestenbach, Jr. v. J. Gerald Collins, 159 So. 3d 531

Gerald Collins granted Garrett Prestenbach a one-year option to purchase about 150 acres for $500,000 on Sept. 15, 2011; Prestenbach paid $25,000 down and planned to finance the remainder with a USDA loan and Collins financing.
The option described property with a township-and-range description, referenced a USDA loan, stated the option was irrevocable for three months and could be revoked after three months with 10 days’ notice, and provided that closing would occur at deed recording with taxes prorated at closing.
Around that time, another buyer offered to purchase the property; Collins sought to induce Prestenbach to give up the option, but Prestenbach refused and recorded the option to protect his position.
On Dec. 16, 2011, Prestenbach exercised the option to purchase; the USDA loan process was nearly complete and USDA approved conditional financing on Dec. 22, 2011.
Collins refused to close, denied the USDA’s inspection request, and filed a quiet-title action; Prestenbach counterclaimed for specific performance; the chancery court granted summary judgment for Collins and denied specific performance; the Court of Appeals affirmed; the Supreme Court granted certiorari to correct the legal matter.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether exercised option entitles specific performance	Prestenbach: option, once exercised, becomes a contract to sell and requires performance.	Collins: no specific performance due because purchaser cannot pay full price before closing.	Yes; Prestenbach entitled to specific performance.
Whether lack of upfront ability to pay negates enforcement; closing date requirement	Prestenbach: no prepayment proof required before closing absent contrary contract terms.	Collins: need for payment ability or fixed closing date to be enforceable.	Closing to occur within a reasonable time after exercise; no prepayment obligation before closing.

Clinton Serv. Co. v. Thornton, 233 Miss. 1, 100 So. 2d 863 (Miss. 1958) (acceptance of option converts to bilateral contract; enforceable sale on exercise)
Busching v. Griffin, 542 So. 2d 860 (Miss. 1989) (option becomes a sale contract upon exercise; enforceability of sale)
Holifield v. Veterans’ Farm & Home Bd., 218 Miss. 446, 67 So. 2d 456 (Miss. 1953) (interpretation of option contracts and enforceability)
Hollingsworth v. Bilbo, 211 Miss. 155, 51 So. 2d 229 (Miss. 1951) (early Mississippi authority on option contracts)
Creely v. Hoseman, 910 So. 2d 512 (Miss. 2005) (specific performance of option contract without definite closing date)
Leach v. Tingle, 586 So. 2d 799 (Miss. 1991) (closing within reasonable time after exercising option)
Fortune Furniture Mfg., Inc. v. Pate’s Elec. Co., 356 So.2d 1176 (Miss. 1978) (contracting parties’ obligations under option and timing concerns)