Contracts
A contract clause stating 'in the event of buyer default, the earnest money shall be the seller's sole remedy' is an example of a(n):
AAcceleration clause
BLiquidated damages clause✓ Correct
CSubordination clause
DArbitration clause
Explanation
A liquidated damages clause pre-determines the remedy for breach — in this case, the seller receives the earnest money and cannot pursue additional damages against the buyer.
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