Contracts
If a buyer defaults under a Montana purchase contract and the seller retains the earnest money, this is known as:
ASpecific performance
BLiquidated damages✓ Correct
CCompensatory damages
DPunitive damages
Explanation
When a contract includes a liquidated damages clause, the earnest money is pre-agreed as the seller's remedy if the buyer defaults. The seller retains the deposit rather than suing for additional damages.
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