Contracts
In Massachusetts, the seller's right to retain the buyer's deposit as liquidated damages is:
AAutomatic upon any buyer default
BTypically specified in the P&S agreement and is the seller's remedy for buyer default✓ Correct
CNot available under Massachusetts law
DAvailable only if the seller has already purchased a replacement property
Explanation
Massachusetts P&S agreements typically include a liquidated damages clause specifying that the seller may retain the deposit if the buyer defaults without legal justification. This is the customary remedy for buyer default.
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