A commercial property buyer in Mesa breaches a $2 million purchase contract. The seller resells the property 60 days later for $1.8 million. The seller incurred $15,000 in additional marketing costs and $10,000 in legal fees. What damages can the seller recover under Arizona law?
Correct Answer
C) $225,000 only
The seller can recover the difference in sale price ($200,000), additional marketing costs ($15,000), and reasonable legal fees ($10,000) totaling $225,000. Option A is incorrect because it excludes incidental damages. Option B is incorrect because it excludes legal fees, which are recoverable. Option D is incorrect because interest and court costs are not automatically included in damage calculations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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