Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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Buyer Smith, based on his lawyer's advice, is tendering the seller because that seller refuses to close the sale. In this situation:

This action puts Buyer Smith in a legal position to seek remedies for breach of contract.
Buyer Smith can pursue the seller for damages, but not specific performance.
Buyer Smith has the right to tender, but this right would not extend to the seller if Smith refused to close.
Tendering refers to bringing a lawsuit against the seller for not closing the sale.
The buyer is liable for any costs incurred during the delay in closing.
The seller can counter-sue for damages and loss of opportunity.

The correct answer is: This action puts Buyer Smith in a legal position to seek remedies for breach of contract.

The correct choice highlights that Buyer Smith's action of tendering puts him in a legal position to seek remedies for breach of contract. Tendering, in contract law, refers to the act of offering to fulfill one's contractual obligations, such as payment or performance, under the terms agreed upon. When the seller refuses to close the sale, buyer Smith formally tendering means he is demonstrating his readiness and willingness to complete the transaction, which is a crucial aspect for asserting a legal remedy. In the context of a breach of contract, this tendering can allow Buyer Smith to pursue various remedies, including seeking specific performance (compelling the seller to fulfill their contractual obligations) or damages for any losses incurred due to the seller's non-performance. This action establishes that Buyer Smith has adhered to his obligations under the contract, reinforcing his legal standing should he choose to initiate further legal action. Other options present different views on the situation that may misinterpret the implications of the tendering action or the rights established through such a legal process. By tendering, the buyer solidifies his position, as opposed to relying on general damages or mistakenly interpreting the nature of tendering as a lawsuit. Understanding this nuance is vital for navigating the legal landscape in real estate transactions.