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Essentially, many real estate documents are contracts, which are for the purchase of real estate. When one party breaks that contract, the other party to the contract ends up being “hurt” or damaged in some way. In following scenario, that is just the case.

Elaine, the seller, and Lorraine, the purchaser, enter into a contract for the purchase and sale of real property for the price of $90,000. The property has a value of $100,000. After the contract has been signed, Lorraine fails to perform.

What is the amount of money damages to be awarded to the Elaine? Explain your answer.

 
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