Contracts
A 'liquidated damages' clause in an Idaho purchase contract typically provides that if the buyer defaults:
AThe seller receives the full purchase price
BThe seller retains the earnest money as the agreed remedy for the buyer's breach✓ Correct
CThe buyer must pay double the purchase price
DThe contract automatically terminates with no penalties
Explanation
A liquidated damages clause specifies in advance the remedy for breach. In most Idaho residential purchase contracts, if the buyer defaults, the seller's sole remedy is retention of the earnest money as liquidated damages.
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