Contracts
In a North Dakota real estate contract, 'liquidated damages' refers to:
ADamages paid to the broker upon cancellation
BA pre-agreed amount specified in the contract to compensate the non-defaulting party in case of a breach✓ Correct
CFunds held by the title company
DDamages paid to the state
Explanation
Liquidated damages are a predetermined sum specified in the contract as the amount of damages for breach. In real estate, the earnest money deposit often serves as liquidated damages for the seller if the buyer defaults.
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