A seller breaches a residential purchase contract after accepting a higher competing offer. The original buyer seeks a court order compelling the seller to complete the sale rather than accepting monetary compensation. Which legal remedy applies, and what is its basis under California law?
Correct Answer
A) Specific performance, because California Civil Code §3387 presumes money damages are inadequate for real property
When a seller breaches a real estate purchase contract, the buyer may seek specific performance — a court order compelling the seller to complete the sale. California Civil Code §3387 establishes a statutory presumption that monetary damages are inadequate to compensate a buyer for a seller's breach of a real property contract, because each parcel of real property is legally considered unique. This presumption makes specific performance the standard and most appropriate remedy available to a buyer in this situation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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.
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