Contracts

In Kansas, what is a 'liquidated damages clause' in a real estate contract?

AA clause requiring all parties to pay attorney fees
BA pre-agreed sum specified in the contract as the amount of damages due if a particular breach occurs (often earnest money as seller's remedy for buyer default)✓ Correct
CA clause requiring specific performance
DA penalty clause imposing damages beyond actual harm

Explanation

A liquidated damages clause pre-establishes the amount of damages (often the earnest money deposit) that the non-breaching party receives if the other breaches. It provides certainty and avoids the need to prove actual damages.

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