Sarah and Tom have signed a purchase agreement for a home in Little Rock. Before closing, Sarah discovers that Tom, the seller, has accepted a higher offer from another buyer. Under Arkansas law, what remedy is most likely available to Sarah?
Correct Answer
D) Sarah may seek specific performance to compel Tom to complete the sale
Because real estate is considered unique under Arkansas law, a buyer under a valid purchase agreement may seek specific performance as a remedy when the seller breaches. Specific performance compels the seller to complete the transaction as agreed, which is a recognized equitable remedy in Arkansas courts for real estate contract breaches.
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Related Topics & Key Terms
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?
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- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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