A buyer sues a seller who refuses to complete the sale of a property under a valid purchase contract. Which remedy would require the seller to go through with the transaction?
Correct Answer
B) Specific performance, requiring the seller to fulfill the terms of the contract
Specific performance is an equitable remedy available in real estate contract disputes because each parcel of real property is considered unique and monetary damages may be inadequate. A court may order the breaching party to fulfill their contractual obligations and complete the sale. Iowa courts recognize specific performance as an appropriate remedy when a seller wrongfully refuses to convey real property under a valid purchase agreement.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
- → In Rhode Island, a licensee submits a written purchase or lease offer to an owner. Which statement is correct?
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- → Which Rhode Island rule applies when a listing agreement lists property with a multiple listing service?
- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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- → For the Hawaii salesperson state portion, interest accrues on a trust-account deposit. Which statement is correct?
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- → For the Hawaii salesperson state portion, a licensee secures a party signature on a Hawaii listing or purchase contract. Which statement is correct?
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