Humber/Ontario Real Estate Course 1 Exam Practice

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What are the appropriate actions the court can take in a breach of contract scenario?

Award punitive damages against the breaching party
Order the breaching party to legal consequences unmentioned in the contract
Annul the contract without any obligations remaining
Force the breaching party to fulfill the terms of the contract

The correct answer is: Force the breaching party to fulfill the terms of the contract

In a breach of contract situation, the court's primary goal is to address the harm caused by the breach and to restore the injured party to the position they would have been in had the contract been performed. Forcing the breaching party to fulfill the contract terms, known as "specific performance," is a common remedy. This is particularly applicable when the subject of the contract is unique, such as in real estate transactions. The court can mandate that the breaching party complete their contractual obligations, ensuring that the non-breaching party receives the benefit they were entitled to under the agreement. The other potential actions that a court might consider, such as awarding punitive damages or annulling the contract, generally serve different purposes and are not as directly focused on fulfilling the contract's original intent. Moreover, legal consequences unrelated to the contract itself are also not common in this scenario, as they veer away from the framework of contract law and into other legal territories.