Contracts
A Hawaii buyer who defaults on a purchase contract by refusing to close may lose their earnest money deposit. This is an example of:
ASpecific performance
BLiquidated damages✓ Correct
CCompensatory damages
DPunitive damages
Explanation
When a contract specifies that the earnest money is the seller's remedy for buyer default, it constitutes liquidated damages—a pre-agreed estimate of actual damages.
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