Angela is selling her duplex in Memphis. She accepts a purchase offer from Thomas, and the parties sign a purchase agreement. Three days later, Angela discovers that Thomas has a history of not following through on real estate contracts. Angela wants to back out of the deal. Under Tennessee law, which of the following remedies is available to Thomas if Angela wrongfully refuses to close?
Correct Answer
B) Thomas may sue for specific performance to compel Angela to sell the property, or sue for money damages
When a seller wrongfully refuses to close on a real estate purchase agreement in Tennessee, the buyer has two primary legal remedies: (1) specific performance — a court order compelling the seller to convey the property as agreed, which is available because real estate is considered unique; or (2) money damages — compensation for losses caused by the breach, which may include additional costs incurred due to the seller's refusal. Both remedies are recognized under Tennessee contract law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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