A buyer in Alaska wishes to back out of a purchase agreement after all contingencies have been removed. The seller chooses to keep the earnest money and release the buyer. This arrangement is called:
Why Liquidated damages Is Correct
Answer D: Liquidated damages
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
People Also Study
Related Alaska Questions
- A buyer defaults on a purchase contract in Alaska. If the contract contains a liquidated damages clause limited to the earnest money, the seller's remedy is:Contracts
- In Alaska, liquidated damages in a purchase agreement typically refer to:Contracts
- An Alaska purchase agreement provides that the buyer may cancel the contract if the property fails a home inspection for any reason. This type of contingency is called a(n):Contracts
- In Alaska, a 'liquidated damages' clause in a purchase agreement specifies:Contracts
- When a buyer terminates a purchase agreement without a valid contractual reason and forfeits earnest money, the broker:Alaska License Law
- A seller in Alaska carries back a purchase money mortgage. This means:Finance
- A real estate salesperson in Alaska receives an earnest money deposit from a buyer. The salesperson should:Alaska License Law
- Under Alaska license law, a licensee who receives a check as earnest money from a buyer should:Alaska License Law
Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →