What is a common consequence of a breach of contract in a real estate transaction?

In a real estate transaction, a breach of contract occurs when one party fails to fulfill its contractual obligations. The common consequence of such a breach is that the non-breaching party may seek damages or specific performance.

Damages refer to monetary compensation for losses incurred because of the breach, while specific performance is a legal remedy that compels the breaching party to fulfill their contractual duties, rather than just providing financial compensation. This is particularly relevant in real estate transactions, where the specific property involved is unique and damages might not fully remedy the situation for the non-breaching party. Therefore, pursuing these remedies allows the wronged party to seek justice and ensure their rights are upheld in the transaction.

The other options do not accurately describe the general legal principles regarding breaches of contract in real estate agreements. Automatically canceling the agreement or requiring all parties to continue with the transaction does not align with the standard legal recourse available. Additionally, the notion of returning the property to its original state is not a typical remedy within the context of contract law for breaches.