Contracts
A Florida buyer makes an earnest money deposit of $15,000 on a $300,000 purchase. The buyer later defaults by failing to close. The seller's remedy under the contract's liquidated damages clause is to:
ASue the buyer for the full $300,000 purchase price
BRetain the $15,000 deposit as full liquidated damages and cannot seek additional damages✓ Correct
CRetain the deposit and also sue for all incidental damages
DReturn the deposit and seek actual damages in court
Explanation
A liquidated damages clause that designates the earnest money as the sole and exclusive remedy limits the seller to retaining the deposit — they cannot also sue for additional damages. This is a 'liquidated damages as the exclusive remedy' provision. If the contract does not include 'exclusive remedy' language, the seller might be able to pursue both retention of deposit and additional damages.
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