Contracts
In Kansas, what is the effect of a buyer's 'earnest money' if they breach the contract?
AIt is always returned to the buyer
BIt may be retained by the seller as liquidated damages if the contract so provides✓ Correct
CIt is split equally between buyer and seller
DIt is forfeited to the brokerage
Explanation
If a contract includes a liquidated damages clause, and the buyer defaults, the seller may retain the earnest money as agreed-upon damages. The specific outcome depends on contract terms.
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