Contracts
A Nebraska purchase agreement contains a liquidated damages clause stating earnest money is the seller's sole remedy if the buyer defaults. If the buyer defaults, the seller can:
ASue for specific performance and keep the earnest money
BOnly keep the earnest money✓ Correct
CSue for actual damages plus keep the earnest money
DReject the earnest money and sue for full damages
Explanation
A liquidated damages clause limits the seller's remedy to the stated amount (earnest money). The seller cannot also sue for additional damages — the clause pre-determines the remedy for breach.
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