ContractsBreach_and_remediesMEDIUM
Helena agreed to sell her home to Theo for $300,000 with a closing date of June 1. Two weeks before closing, a buyer offered Helena $325,000 for the same property and she informed Theo by email that she was withdrawing from their contract. Theo had already paid $1,500 for a home inspection and $800 for an appraisal, and similar homes in the neighborhood now list for roughly $15,000 more than Helena's contract price. Theo files suit asking the court to make him whole for the financial position he would have occupied had Helena performed. Which form of monetary award is Theo most likely to receive?
Correct Answer
B) Compensatory damages
Helena's repudiation caused Theo measurable, out-of-pocket losses (the $1,500 inspection plus the $800 appraisal) plus a quantifiable market difference of approximately $15,000. A court awarding monetary relief to restore Theo to the position he would have occupied had Helena performed grants compensatory damages.
Answer Options
A
Mutual releaseB
Compensatory damagesC
Anticipatory breachD
Earnest money depositWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Background Knowledge for Contracts
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Real World Application in Contracts
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Related Topics & Key Terms
Key Terms:
seller breachout-of-pocket lossmonetary recoverymake wholemarket difference
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