Arizona 6-Hour Contract Writing Course Practice Test

When someone signs a purchase contract, they enter into a legally binding agreement that outlines the obligations of both parties involved. If Fiona decides to walk away from the contract, she is essentially breaching that agreement. In most purchase contracts, there are specific terms regarding what happens in the event of a breach by the buyer.

In this scenario, if Fiona walks away, she may indeed lose any deposits she has made towards the purchase, often referred to as earnest money, which is typically held to demonstrate her serious intent to buy. Moreover, she could also be liable for damages that result from her breach, which may include costs incurred by the seller due to the breach, such as lost time on the market or other financial losses attributed to her departure from the contract.

Therefore, the outcome for Fiona is that she potentially forfeits her deposits and may face additional financial responsibilities due to her decision to withdraw from the agreement. This aligns with standard contractual obligations where a breach by one party can lead to such implications.