Contracts
A Hawaii purchase contract that includes a 'liquidated damages clause' in favor of the seller means that if the buyer defaults:
AThe seller can sue for any amount of damages
BThe seller's sole remedy is to retain the earnest money as specified✓ Correct
CThe buyer must pay double the earnest money
DThe contract is automatically voided
Explanation
A liquidated damages clause pre-specifies the amount of damages (usually the earnest money) as the seller's exclusive remedy if the buyer defaults. This limits the seller to retaining the deposit rather than suing for additional damages.
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