Breach of Contract
A failure to perform a contractual obligation without legal excuse, which gives the other party remedies.
Quick flashcard
What does Breach of Contract mean on the Texas real estate exam?
Answer: A failure to perform a contractual obligation without legal excuse, which gives the other party remedies.
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Breach of Contract definition
A breach of contract occurs when a party fails to perform an obligation under the contract without a legal excuse. The non-breaching party may then pursue remedies such as specific performance, liquidated or actual damages, or rescission.
When a buyer breaches, the seller may keep the earnest money as liquidated damages or sue for performance or damages. When a seller breaches, the buyer may sue for specific performance or damages.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Contracts & Agency (16 of 80 National)
From definition to recall
See this term inside a real exam question.
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