Two weeks before closing, the seller tells the buyer in writing that the seller will not transfer the property under any circumstances. What type of breach is this?
Correct Answer
A) Anticipatory breach
Anticipatory breach is correct because the facts match a clear statement or action before the performance date showing that a party will not perform the contract. That is the best description of the relationship, right, or legal concept tested here.
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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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