Jessica signs a purchase contract to buy Wilbur's gorgeous home in Santa Monica. Wilbur gets a better offer, though, and attempts to back out of his signed contract with Jessica. Jessica pursues a lawsuit so that she can move into Wilbur's home, as originally agreed. What is TRUE about this situation?

A forfeiture clause does not preclude Jessica from pursuing legal action. In most cases, such clauses pertain to penalties for non-compliance rather than eliminating a party's right to seek enforcement of the contract. Jessica's right to sue for specific performance remains intact regardless of any forfeiture clause.

While Jessica can seek damages as an alternative, the unique nature of real estate means that specific performance is often favored in such cases. Courts generally prefer to compel the performance of a contract for unique properties rather than simply awarding monetary damages, making this statement inaccurate regarding her likelihood of success.

This assertion is incorrect because once a contract is signed, both parties are legally bound to its terms unless a valid legal reason exists to void it. Wilbur cannot unilaterally back out without facing legal consequences, allowing Jessica to pursue her claim for specific performance.