A seller in Chandler breaches a purchase contract by selling to another buyer for a higher price. The original buyer had already arranged temporary housing and incurred $3,000 in moving expenses. Can the buyer recover these costs under Arizona law?
Correct Answer
B) Yes, as consequential damages if foreseeable
The buyer can recover moving expenses as consequential damages if they were foreseeable at contract formation and naturally flowed from the breach. Option A is incorrect because these are indirect, not direct damages. Option C is incorrect because expenses incurred in reasonable reliance on the contract can be recoverable. Option D is incorrect because consequential damages don't require specific contract provision if they meet legal requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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