ContractsIntermediateArizona Exam

An Arizona seller who accepts earnest money and then refuses to close may be required by a court to:

AOnly return the earnest money
BSpecifically perform the contract and convey the propertyCorrect
CPay a fine to the ADRE
DOnly pay liquidated damages equal to the earnest money

Why Specifically perform the contract and convey the property Is Correct

Answer B: Specifically perform the contract and convey the property

Because real estate is considered unique, a buyer can seek specific performance—a court order requiring the seller to complete the sale. The court may also award damages, but specific performance is a remedy unique to real estate contracts.

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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