In Colorado, what happens if the seller defaults on the purchase contract (refuses to close)?
Why B. The buyer may sue for specific performance (to compel the sale), rescission and damages, or retain earnest money — based on contract terms and what the court allows Is Correct
Answer B: B. The buyer may sue for specific performance (to compel the sale), rescission and damages, or retain earnest money — based on contract terms and what the court allows
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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Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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