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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