Humber/Ontario Real Estate Course 1 Exam Practice

When faced with a breach of contract, which of the following is NOT a remedy for the buyer or seller?

1. Having the court force the party who breached the agreement to complete it

2. Discharging the contract by mutual agreement

3. Seeking damages for losses incurred due to the breach

4. Setting aside the contract

The correct answer is: Seeking damages for losses incurred due to the breach

The correct answer is C. Seeking damages for losses incurred due to the breach is actually a legitimate remedy available to a buyer or seller in the event of a breach of contract. This remedy allows the non-breaching party to recover financial losses that resulted directly from the breach, which serves to compensate them for any harm suffered. On the other hand, the other options describe actions that can be taken following a breach of contract. Having the court force the party who breached the agreement to complete it is known as specific performance, which is an enforceable remedy aimed at compelling the defaulting party to fulfill their obligations as outlined in the contract. Discharging the contract by mutual agreement provides an avenue for both parties to agree to terminate the contract without further obligation, making it a viable option when both parties are willing to release each other from their commitments. Setting aside the contract refers to a court's determination to cancel or nullify a contract due to circumstances such as fraud or duress, which is also a recognized option in breach situations. In summary, while seeking damages is a valid recourse under contract law, the other options represent strategies for addressing a breach that involve either legal enforcement or mutual agreement between the parties.