One week before closing, the seller begins moving furniture and fixtures that the contract says are included. The buyer's agent documents the removal and notifies the seller in writing. If the seller does not restore the items, what type of breach may occur at closing?
Correct Answer
B) Anticipatory breach
Anticipatory breach occurs when a party's actions before the performance date clearly show they will not perform the contract. Removing included items signals non-performance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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