What is the effect of a buyer’s breach of representation or warranty after completion?

When considering the implications of a buyer's breach of representation or warranty after the completion of a contract, it is significant to understand that such a breach does not provide the buyer with the automatic right to cancel the contract. Instead, the buyer retains the option to pursue damages as a remedy.

In essence, if a buyer breaches a representation or warranty, they may be held responsible for any resulting damages incurred by the seller. This means that the seller could potentially take legal action against the buyer to recover losses stemming from that breach. The reason this option is appropriate is that it aligns with the principles of contract law, where parties are typically entitled to seek damages for non-performance or misrepresentation rather than escape the contract entirely.

Other options, such as an immediate cancellation of the contract, lack foundation because breach typically seeks remedies, not outright termination unless expressly allowed by the terms of the agreement. Mediation is a conflict-resolution process that may occur prior to legal action but does not inherently offer a right to the buyer post-breach. Additionally, suggesting that the buyer has no recourse against the seller overlooks legal avenues available for breaches, thus rendering that choice incorrect.

Thus, the most accurate representation of the buyer's situation post-breach is their right to seek damages