Law of Contracts exam 2024 with 100% correct answers

Default of contract and types of damages (pg 137) correct answersLiquidated Damages - The seller can choose to accept the buyer's earnest money as liquidated damages, releasing all parties from any further obligation under the contract. Liquidated damages are damages that are established in the contract. Monetary Damages - The injured party may "seek such other relief as may be provided by law." This would be an award of monetary damages by the court. Because monetary damages are awarded by the court, one never knows what they will be until the court rules. Specific Performance - The injured party files a court action seeking an order of the court directing the defaulting party to perform according to the terms of the contract. Specific performance is the only remedy that would possibly result in the full execution (closing) of the transaction. Leases and "right of first refusal" (pg 19) correct answersRight of first refusal - Gives the tenant the right to purchase the leased property by matching or bettering any offer before the property will be sold to someone else. There's also the possibility of a leasing having an option to purchase, AKA lease-purchase agreement, which gives the tenant occupancy in the present time and the right to purchase at a future date. Default remedies and their results (pg 137) correct answersSeller Default - in the event of default by the seller, the buyer becomes the injured party. The buyer has the option of: Specific Performance Monetary Damages Refund of Earnest Money. The buyer's acceptance of an earnest money refund terminates the contract, releasing both parties from any further obligation under the contract. Buyer Default - Options are: Liquidated damages Monetary Damages Specific Performance Paragraph 11 - Legal vs Illegal Entries (pg 135) correct answers