ContractsIntermediateAlaska Exam

An Alaska seller accepts an offer with a 30-day closing period. On day 25, the seller refuses to proceed with the transaction without justification. The buyer's legal remedies include:

ACancellation only — the buyer has no further remedies
BSpecific performance, rescission, or damagesCorrect
COnly monetary damages not to exceed the earnest money
DRe-listing the property at the buyer's expense

Why Specific performance, rescission, or damages Is Correct

Answer B: Specific performance, rescission, or damages

When a seller breaches a purchase agreement without legal justification, the buyer may choose among several remedies: (1) specific performance — compelling the seller to convey the property; (2) rescission — canceling the contract and receiving the earnest money back; or (3) money damages.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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