A buyer and seller in Prince George's County, Maryland, execute a purchase agreement on April 5th with a settlement date of May 31st. On May 15th, the seller informs the buyer that she has received a higher offer and refuses to proceed with the sale. The buyer has already paid for a home inspection and appraisal. Under Maryland law, which remedy is available to the buyer?
Correct Answer
A) The buyer may sue for specific performance to compel the seller to complete the sale
Under Maryland contract law, when a seller breaches a valid purchase agreement, the buyer has the equitable remedy of specific performance — a court order compelling the seller to convey the property as agreed. Real property is considered unique, making monetary damages potentially inadequate, which is why specific performance is a recognized remedy in Maryland real estate contract disputes. The buyer may also seek damages for out-of-pocket costs (inspection, appraisal) in addition to or instead of specific performance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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.
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