If a buyer fails to fulfill their end of a contract, what is the seller entitled to?

When a buyer fails to fulfill their contractual obligations, the seller is entitled to liquidated damages. Liquidated damages are predetermined sums that are agreed upon in a contract to be paid if one party breaches the agreement. This type of remedy is designed to provide a clear and fixed amount to compensate the non-breaching party without having to prove actual damages.

In real estate transactions, liquidated damages often serve as a practical solution to disputes that may arise when the buyer does not perform, offering a measure of security to the seller. These damages are typically specified in the contract itself and are structured to make it clear what compensation will be owed in the event of a breach.

While other forms of damages, such as specific performance or compensatory damages, could theoretically apply in some breach scenarios, liquidated damages are explicitly defined in contracts to streamline the resolution process. Emotional distress damages are not usually applicable in breach of contract situations, particularly in real estate transactions, as these remedies are more aligned with personal injury or tort claims.