A Missouri purchase agreement for a home in Columbia includes a clause stating that if the seller fails to close by the agreed date, the buyer's sole remedy is return of the earnest money. The seller then refuses to close without justification. The buyer wants to force the seller to complete the sale. Which legal remedy is available to the buyer under Missouri law that would override this contractual limitation?
Correct Answer
B) The buyer may seek specific performance in a Missouri court to compel the seller to convey the property
Under Missouri law, specific performance is an equitable remedy available to buyers when a seller breaches a real estate purchase agreement. Because real property is considered unique, Missouri courts may order a seller to complete the conveyance rather than simply award money damages. While contractual limitation-of-remedy clauses are generally enforceable, courts may decline to enforce such clauses when they would be unconscionable or when equity demands the full remedy. Specific performance is a recognized and frequently available remedy for seller breach in Missouri real estate transactions.
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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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