Patricia agreed to sell her Annapolis home to Robert for $480,000. The contract did not contain a liquidated damages clause. Robert defaulted two weeks before settlement without any contractual right to do so. Patricia was forced to relist the property and ultimately sold it to another buyer for $455,000, incurring $3,000 in additional carrying costs during the relisting period. What remedy is Patricia most likely entitled to pursue under Maryland law?
Correct Answer
C) Actual damages, including the $25,000 price difference plus the $3,000 in additional carrying costs
When no liquidated damages clause exists in a Maryland purchase contract and the buyer defaults, the seller may pursue actual damages. Actual damages include the difference between the contract price and the resale price ($480,000 - $455,000 = $25,000) plus consequential damages such as additional carrying costs ($3,000) that were a foreseeable result of the buyer's breach. This is the standard common law remedy available to a non-breaching seller in Maryland.
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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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