Contracts
In New Mexico, 'specific performance' as a remedy for breach of a real estate contract means:
AThe breaching party pays monetary damages
BThe court orders the breaching party to perform their contractual obligations — most commonly used to force the sale of real property as agreed✓ Correct
CThe contract is voided and both parties are released
DThe non-breaching party gets the earnest money
Explanation
Specific performance is an equitable remedy used in real estate contracts because each parcel is considered unique. A court may order the seller to convey the property as agreed, or compel the buyer to complete the purchase, rather than awarding money damages alone.
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