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 for what is NOT a remedy for the buyer or seller when faced with a breach of contract is that option is seeking damages for losses incurred due to the breach. In the context of contract law, remedies generally refer to the options available to the non-breaching party to address the situation when one party fails to fulfill their obligations under the contract. Remedies can include: - Having the court enforce specific performance, compelling the party to complete their obligations. - Discharging the contract by mutual agreement, where both parties consent to terminate the contract. - Setting aside the contract, which can occur if the contract was entered into based on misrepresentation, fraud, or other significant issues. Seeking damages, on the other hand, is a common remedy for a breach of contract, where the affected party would claim compensation for the financial losses they have suffered due to the breach. It is a foundational principle in contract law to make the non-breaching party whole by providing compensation for losses rather than enforcing the completion of the contract. Thus, the selection regarding seeking damages is not representative of a remedy that would not apply to the buyer or seller facing a breach; instead, it is a typical and accepted remedy in these scenarios.