Under Arizona law, a party seeking to retain earnest money after buyer's breach must do all of the following EXCEPT:
Correct Answer
C) Obtain court approval before retaining the funds
Court approval is not required to retain earnest money after proper breach procedures are followed. Option A is correct as written notice is required. Option B is correct as a reasonable cure period must be provided. Option D is correct as contract escrow procedures must be followed.
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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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