Contracts

Under Alaska law, a buyer who defaults on a purchase agreement may face which remedies from the seller?

AOnly the return of the earnest money
BRetention of earnest money as liquidated damages, or actual damages, or a suit for specific performance✓ Correct
CNo remedies — the seller simply re-lists the property
DA fine paid to the Alaska Real Estate Commission

Explanation

When a buyer defaults, the seller may: (1) retain the earnest money as liquidated damages (if the contract so provides), (2) sue for actual monetary damages, or (3) in some cases seek specific performance (requiring the buyer to complete the purchase). The available remedies depend on the contract terms and the circumstances.

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