Contracts
A Rhode Island buyer who defaults on a purchase contract with a liquidated damages clause will typically:
ABe liable for the seller's actual damages, which may exceed the deposit
BForfeit the earnest money deposit as the seller's sole remedy under the clause✓ Correct
CFace criminal charges for breach of contract
DBe required to complete the purchase by court order
Explanation
Under a liquidated damages clause, the earnest money deposit is designated as the seller's sole remedy in the event of buyer default, and the buyer forfeits it without further liability.
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