Contracts

In a Texas real estate contract, 'specific performance' is a remedy where:

AThe breaching party pays monetary damages to the non-breaching party
BA court orders the breaching party to carry out their contractual obligations (e.g., complete the sale)✓ Correct
CThe contract is rescinded and both parties return to their original positions
DEarnest money is forfeited as the exclusive remedy

Explanation

Specific performance is an equitable remedy where a court orders a party to fulfill their contractual obligations. In real estate, because land is unique, courts may compel a seller (or buyer) who has breached a contract to complete the transaction rather than just paying damages. TREC contracts do not limit specific performance as a remedy.

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