An Ohio seller breaches a purchase agreement at $350,000. The buyer had incurred $2,500 in inspection costs, $800 in appraisal fees, and $1,200 in attorney fees before the breach. The buyer then purchases a comparable home for $365,000. Under Ohio contract law, what is the buyer's total compensatory damages?
Correct Answer
D) $19,500, representing the price difference plus out-of-pocket expenses
Under Ohio contract law, the buyer's compensatory damages include: (1) the difference between the contract price and the price of a comparable replacement property ($365,000 - $350,000 = $15,000), plus (2) out-of-pocket expenses incurred in reliance on the breached contract ($2,500 + $800 + $1,200 = $4,500). Total: $15,000 + $4,500 = $19,500.
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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.
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