Contracts
Liquidated damages in a real estate contract refer to:
ADamages ordered by a court after trial
BA predetermined amount of damages agreed upon by both parties in case of breach✓ Correct
CThe broker's commission due upon closing
DPenalties imposed by the NJREC
Explanation
Liquidated damages are a pre-agreed sum (often the earnest money deposit) that the non-breaching party receives if the other party defaults, avoiding the need to prove actual damages.
Related New Jersey Contracts Questions
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