Contracts
Specific performance as a legal remedy in a real estate contract means:
AThe defaulting party pays monetary damages
BThe court orders the breaching party to perform the contract as agreed✓ Correct
CThe contract is voided and parties are returned to their original positions
DThe earnest money is forfeited
Explanation
Specific performance is an equitable remedy where a court orders the breaching party to fulfill the terms of the contract. It is often sought in real estate transactions because each parcel is considered unique and monetary damages may be inadequate.
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Key Terms to Know
Earnest Money
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.
Math Concepts
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