A Tennessee seller, Patricia, signs a purchase contract with buyer Derek. Two weeks before closing, Patricia informs Derek that she has accepted a higher offer from another buyer and refuses to sell to Derek. Derek wants to force Patricia to sell him the property at the agreed price. Which remedy should Derek pursue in a Tennessee court?
Correct Answer
A) Specific performance to compel Patricia to complete the sale
Derek should seek specific performance, which is the equitable remedy that compels a seller to transfer the property as agreed. Tennessee courts recognize that real property is unique and that monetary damages may not adequately compensate a buyer for losing a specific piece of real estate. Because Patricia has a valid, enforceable contract with Derek, a court may order her to complete the transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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