Contracts
Vermont's liquidated damages clause in a real estate contract specifies that:
AThe court will determine damages at trial
BA pre-agreed sum (often the earnest money) will be the seller's remedy if the buyer defaults✓ Correct
CAll damages are waived by both parties
DThe broker receives the earnest money if either party defaults
Explanation
A liquidated damages clause provides that a specified sum (typically the earnest money deposit) will serve as the seller's sole remedy in the event of a buyer's default, avoiding the need to prove actual damages in court.
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