Contracts
Liquidated damages in a real estate contract are:
ADamages calculated by the court after breach
BA pre-agreed amount of damages specified in the contract for breach✓ Correct
CPunitive damages designed to punish the breaching party
DMedical expenses related to property defects
Explanation
Liquidated damages are a specific dollar amount (or formula) agreed to in advance and specified in the contract as the remedy for breach. Earnest money often serves as liquidated damages if the buyer defaults.
Related Georgia Contracts Questions
- A unilateral contract in real estate is exemplified by:
- A 'novation clause' in a purchase contract (specifically regarding an assumable mortgage) means the new buyer:
- Under Georgia contract law, a contract signed by a minor (under age 18) is:
- Novation in real estate contract law means:
- A buyer's right to inspect property under the GAR Due Diligence Addendum includes the right to:
- In Georgia, which of the following makes a contract void (not merely voidable)?
- A contract clause that makes the buyer's obligation contingent on obtaining a mortgage is called a:
- The Georgia Association of REALTORS (GAR) Purchase and Sale Agreement is an example of a:
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