Contracts
Liquidated damages in a Delaware real estate contract are:
ADamages awarded by a court after a trial
BA pre-agreed sum to be paid as damages in the event of breach✓ Correct
CThe actual market value loss from the breach
DTriple damages for willful breach
Explanation
Liquidated damages are damages that the parties agree upon in advance as a reasonable estimate of the harm that would result from a specific breach, such as forfeiture of the earnest money deposit.
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