ContractsIntermediateDelaware Exam

In Delaware, what happens if a buyer defaults on a real estate purchase contract?

AThe seller is automatically entitled to all earnest money
BThe remedies are determined by the contract terms and applicable lawCorrect
CThe seller must immediately re-list the property
DThe buyer owes the seller's agent a full commission

Why The remedies are determined by the contract terms and applicable law Is Correct

Answer B: The remedies are determined by the contract terms and applicable law

The consequences of buyer default depend on the specific contract terms and applicable Delaware law. Remedies may include forfeiture of earnest money, specific performance, or 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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