Contracts
What is 'liquidated damages' in a Florida real estate contract?
AMoney damages determined by a court after breach
BA pre-agreed amount of damages specified in the contract to be paid upon breach✓ Correct
CDamages paid directly to FREC upon contract violation
DInsurance proceeds paid when a contract falls through
Explanation
Liquidated damages are a pre-agreed sum specified in the contract as compensation in case of breach. In Florida residential contracts, the earnest money deposit is often designated as liquidated damages — if the buyer defaults, the seller keeps the deposit as their sole remedy.
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