Contracts
A liquidated damages clause in a NJ real estate contract specifies:
AThe exact repairs the seller must make
BThe amount of damages payable upon breach, agreed upon in advance by the parties✓ Correct
CThe closing date
DThe mortgage interest rate
Explanation
A liquidated damages clause pre-establishes the amount of compensation due upon breach (typically retention of the deposit), which courts will enforce if the amount is a reasonable estimate of actual damages.
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