Under California law, all of the following statements about specific performance as a remedy in real estate transactions are correct EXCEPT:
Correct Answer
C) Specific performance is automatically granted by the court whenever a seller breaches a purchase agreement
Specific performance is NOT automatically granted. It is an equitable remedy within the court's discretion. Under California Civil Code §3384, the court considers factors such as whether the contract terms are definite, whether the requesting party has performed their obligations, and whether granting the remedy would be just. The court may deny specific performance even when a breach has occurred.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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.
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