Contracts
Liquidated damages in a Utah real estate contract are:
AThe actual damages calculated after a breach
BA pre-agreed amount of damages specified in the contract, often the earnest money✓ Correct
CDamages awarded by a court for breach
DDamages paid in cash at closing
Explanation
Liquidated damages are a pre-agreed sum (often the earnest money deposit) that the parties agree will be paid to compensate for breach. If the buyer defaults, the seller's liquidated damages remedy may be limited to keeping the earnest money—avoiding the need to prove actual damages.
Related Utah Contracts Questions
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