Contracts
Liquidated damages in a North Carolina real estate contract are:
ADamages decided by a court after trial
BA predetermined amount agreed upon as damages in the event of breach✓ Correct
CA penalty imposed by NCREC
DThe cost of title insurance
Explanation
Liquidated damages are a sum agreed upon by the parties in the contract to serve as compensation for breach, often the earnest money deposit in a real estate contract.
Related North Carolina Contracts Questions
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