Contracts
In NC, 'liquidated damages' provisions in real estate contracts are enforceable if:
AThe amount is at least $1,000
BThe amount is a reasonable pre-estimate of actual damages and actual damages would be difficult to calculate✓ Correct
CBoth parties agree after the breach occurs
DThe contract was prepared by an attorney
Explanation
NC courts uphold liquidated damages provisions when the amount is a reasonable pre-estimate of actual damages anticipated at the time of contracting and actual damages would be difficult to determine.
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