Contracts
In Oregon, a buyer who has signed a purchase agreement but cannot perform because of unexpected personal hardship (loss of job after signing) may face which consequences?
ANo consequences since hardship is an automatic defense
BForfeiture of earnest money and potential liability to the seller for additional damages✓ Correct
COnly a refund of the earnest money, no other consequences
DAutomatic contract cancellation with no liability
Explanation
In Oregon, if a buyer defaults on a purchase contract without a valid contingency to invoke, the seller may retain the earnest money and potentially sue for additional damages (specific performance or compensatory damages). Personal hardship after signing is generally not a legal defense unless there is a specific contractual provision or the contract has a financing contingency that applies.
Related Oregon Contracts Questions
- Which of the following is a characteristic of an 'as-is' clause in an Oregon purchase contract?
- A buyer's purchase agreement includes a contingency stating 'subject to buyer's attorney review within 5 days.' This is a:
- An Oregon buyer's offer includes a financing contingency stating the transaction is contingent on obtaining a 30-year loan at no more than 7% interest. If the buyer only qualifies for 7.5%, the buyer may:
- An Oregon purchase agreement states the closing date is June 15. The parties have not included a 'time is of the essence' clause. What is the effect?
- In Oregon, what is 'unjust enrichment' as a legal doctrine in real estate?
- What is 'mutual assent' in an Oregon real estate contract?
- In Oregon, a 'force majeure' clause in a commercial real estate contract provides which protection?
- What does 'specific performance' mean as a remedy in an Oregon real estate contract?
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →