contracts
breach of contract
A breach of contract is a failure, without legal excuse, to perform any promise that is part of a contract. The non-breaching party may have several remedies, including suing for actual damages, enforcing liquidated damages such as keeping the earnest money, seeking specific performance to force the sale, or rescinding the contract. Which remedies are available depends on the contract terms and state law.
- Exam tip
- Specific performance is typically available against a breaching seller because land is unique. A liquidated damages clause often limits the seller's remedy to keeping the earnest money.
- Example
- A seller refuses to close after the buyer has met all conditions; the buyer sues for specific performance to force the sale.
Related terms & state variants
Sources
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Last verified: 2026-10-23