Contracts
In New York, 'liquidated damages' in a purchase contract are:
ADamages paid in cash only
BA pre-agreed amount (often the earnest money deposit) that serves as the seller's remedy if the buyer defaults✓ Correct
CUnlimited damages the seller can claim for any breach
DDamages determined by the court
Explanation
Liquidated damages are a pre-agreed remedy for breach. In many New York real estate contracts, the earnest money deposit serves as liquidated damages—if the buyer defaults, the seller retains the deposit as their sole remedy (unless the contract provides otherwise).
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