ContractsIntermediateCalifornia Exam

Specific performance is a remedy that requires:

APayment of money damages, consistent with common contract law principles

BThe breaching party to actually perform the contractCorrect

CRescission of the contract, per standard contingency and disclosure practice

DArbitration, under standard California purchase contract terms

Why The breaching party to actually perform the contract Is Correct

Answer B: The breaching party to actually perform the contract

Specific performance is an equitable remedy requiring the breaching party to fulfill their contractual obligations. It is commonly used in real estate because every parcel of 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

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

People Also Study

Key Terms to Know

Earnest Money

A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.

Right of First Refusal

A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

Purchase Agreement

A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.

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