Contracts
A buyer who gives a seller a deposit check that cannot clear the bank may be liable for:
ANothing, as deposits are refundable
BCriminal charges and civil liability for fraud✓ Correct
COnly returning the property to the seller
DReimbursement of closing costs only
Explanation
Passing a check known to have insufficient funds constitutes fraud and may result in criminal charges under California law, in addition to civil liability for any damages the seller suffers as a result.
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