Contracts
A Missouri buyer defaults on a purchase contract after earnest money is deposited. If the contract specifies liquidated damages:
AThe buyer receives all earnest money back
BThe seller keeps the earnest money as the only remedy✓ Correct
CThe seller can sue for actual damages plus keep earnest money
DMREC determines the outcome
Explanation
A liquidated damages clause in a Missouri contract typically limits the seller's remedy to retaining the earnest money as pre-agreed damages, forfeiting the right to sue for additional damages.
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