ContractsIntermediateArizona Exam

In Arizona, specific performance as a remedy for breach of a real estate contract means:

AThe breaching party pays money damages
BThe court orders the breaching party to complete the transactionCorrect
CThe contract is rescinded and both parties are returned to their original positions
DThe earnest money is forfeited

Why The court orders the breaching party to complete the transaction Is Correct

Answer B: The court orders the breaching party to complete the transaction

Specific performance is a legal remedy where the court orders the breaching party to fulfill the contract obligations—often sought in real estate because land is considered unique and money damages may be inadequate.

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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