Contracts
In Minnesota, a buyer who defaults on a purchase agreement may face which consequences?
AOnly loss of earnest money
BLoss of earnest money as liquidated damages or a lawsuit for specific performance or actual damages, depending on the contract terms✓ Correct
CCriminal prosecution for breach of contract
DMandatory participation in mediation only
Explanation
A defaulting buyer in Minnesota may lose their earnest money as liquidated damages (if the contract so provides) or face a lawsuit for specific performance (forcing completion of the sale) or actual damages. The remedy available depends on the contract terms and the seller's choice of remedy.
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