A Chandler buyer's contract includes a clause stating 'Seller warrants that all systems and appliances will be in working order at closing.' Three days before closing, the air conditioning system fails. What are the seller's obligations under Arizona law?
Correct Answer
A) Must repair or replace the air conditioning system
Correct: A - Must repair or replace the air conditioning system. When a seller provides a warranty that systems will be in working order at closing, they must repair or replace non-functioning systems to meet that warranty. Why not B: This option is incorrect because "No obligation since it's normal wear and tear" does not match the rule tested by the question. The correct answer is "Must repair or replace the air conditioning system". When a seller provides a warranty that systems will be in working order at closing, they must repair or replace non-functioning systems to meet that warranty. Why not C: This option is incorrect because "Only needs to disclose the failure to the buyer" does not match the rule tested by the question. The correct answer is "Must repair or replace the air conditioning system". When a seller provides a warranty that systems will be in working order at closing, they must repair or replace non-functioning systems to meet that warranty. Why not D: This option is incorrect because "Can reduce the purchase price instead of repairing" does not match the rule tested by the question. The correct answer is "Must repair or replace the air conditioning system". When a seller provides a warranty that systems will be in working order at closing, they must repair or replace non-functioning systems to meet that warranty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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