A buyer and seller in Alberta have a firm purchase contract, but the buyer discovers before completion that the seller has accepted a higher offer from another party. What legal remedy is available to the buyer?

Q: What is the correct answer to: A buyer and seller in Alberta have a firm purchase contract, but the buyer discovers before completion that the seller has accepted a higher offer from another party. What legal remedy is available to the buyer?

The correct answer is The buyer may seek specific performance through the courts, compelling the seller to complete the sale. Under Alberta law, when a seller breaches a firm purchase contract, the buyer may seek specific performance — a court order compelling the seller to complete the original sale. Courts grant this remedy for real estate because each property is considered unique, making monetary damages inadequate to fully compensate the buyer.

Q: What background knowledge is needed for this Contracts & Agreements question?

Specific performance is an equitable remedy rooted in the principle that real property is unique. Unlike goods, a court cannot simply order a substitute property. Alberta courts follow established Canadian common law recognizing that monetary damages alone are insufficient when a seller breaches a real estate contract.

Q: What is a good way to remember the answer to this Contracts & Agreements question?

Think 'SP = Seller must Perform.' When a seller breaks a firm deal, the court can force them to specifically perform — complete the original sale as agreed. On the exam, when a seller breaches a firm contract, the strongest buyer remedy is always specific performance. Remember 'unique property = specific performance.'

Q: What exam tip applies to this Contracts & Agreements question?

Specific performance is the go-to answer when a seller breaches a firm real estate contract. It is stronger than damages because each property is unique and irreplaceable.

Q: How does this Contracts & Agreements concept apply in real world practice?

A buyer has a firm contract to purchase a heritage home for $550,000. The seller receives a $620,000 offer and attempts to sell to the new buyer. The original buyer files for specific performance, and the court orders the seller to complete the $550,000 sale as originally contracted.

Question

Contracts & AgreementsABHARD

A buyer and seller in Alberta have a firm purchase contract, but the buyer discovers before completion that the seller has accepted a higher offer from another party. What legal remedy is available to the buyer?

Answer Options

A

The buyer can only claim the return of their deposit

B

The buyer may seek specific performance through the courts, compelling the seller to complete the sale

C

The buyer must renegotiate the purchase price

D

The buyer has no legal remedy once the seller accepts another offer