Contracts

A 'material breach' of a real estate contract is one that:

AInvolves a minor clerical error
BGoes to the heart of the contract and defeats its purpose✓ Correct
COccurs only at closing
DInvolves failure to pay the earnest money

Explanation

A material breach is one so significant that it defeats the contract's purpose, entitling the non-breaching party to rescind the contract and seek damages. A minor breach may allow for damages but not rescission.

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