California Real Estate SalespersonContractsHard
A buyer signs a purchase agreement for a unique historic property with distinctive architectural features that cannot be duplicated elsewhere. The seller later refuses to close without legal justification. Because monetary damages would be inadequate to compensate the buyer, a court is most likely to grant which remedy?
- ACompensatory damages equal to the difference in market value
- BLiquidated damages only
- CSpecific performance, compelling the seller to convey the property
- DPunitive damages against the seller
Show answer & explanationAnswer & explanation
Correct answer: C. Specific performance, compelling the seller to convey the property
Because real property—especially a unique property—is considered legally unique, courts often grant specific performance, compelling the breaching seller to complete the sale, since monetary damages would not adequately compensate the buyer for the loss of a one-of-a-kind property.
Why the other options are wrong
- A. Money damages are considered inadequate for unique real property, so this is not the best remedy.
- B. Liquidated damages caps apply mainly to buyer defaults on residential deposits, not seller refusal to convey unique property.
- D. Punitive damages are rarely awarded for ordinary breach of contract cases.
Specific Performance
An equitable remedy compelling a party to perform their contractual obligations, commonly used in real estate because each parcel is considered legally unique.
- Available when money damages are inadequate
- Real property is presumed unique under the law
- Common remedy for seller's refusal to convey property
Memory trick: Land is unique—force the deal through specific performance