National Real Estate Exam (PSI)ContractsHard
A seller breaches a signed purchase agreement by refusing to convey title to a unique historic property, even though the buyer is ready, willing, and able to close. What remedy would most likely allow the buyer to force the seller to complete the sale?
- ASpecific performance
- BLiquidated damages
- CRescission
- DCompensatory damages
Show answer & explanationAnswer & explanation
Correct answer: A. Specific performance
Specific performance is an equitable remedy compelling a party to fulfill contractual obligations, commonly granted for real estate because each parcel is considered unique and money damages are inadequate.
Why the other options are wrong
- B. Liquidated damages are a pre-set monetary amount, not a way to force conveyance.
- C. Rescission cancels the contract, which is the opposite of what the buyer wants here.
- D. Compensatory damages provide money, not the property itself, which the buyer wants.
Specific Performance
An equitable remedy where a court orders a breaching party to perform their contractual obligations, often used in real estate due to the uniqueness of land.
- Common remedy for real estate breach
- Available when monetary damages are inadequate
- Court forces the seller to actually convey title
Memory trick: Land is one of a kind — make them hand it over.