A buyer in New York breaches a contract to purchase a $600,000 home and forfeits a $30,000 earnest money deposit. The seller incurs $8,000 in additional carrying costs and $4,000 in remarketing expenses before selling to another buyer for $585,000. What is the seller's total recoverable damages?
Correct Answer
C) $57,000
Total damages = Earnest money retained ($30,000) + Loss on resale ($600,000 - $585,000 = $15,000) + Incidental damages ($8,000 + $4,000 = $12,000) = $57,000. The seller can recover all actual damages caused by the breach.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
More Contracts Ny Real Property Law Questions
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- → A New York purchase contract specifies that the buyer will provide 'good faith deposit' but does not specify the amount. What is the legal effect of this provision?
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