Contracts
If a buyer defaults on a Virginia real estate sales contract, the seller's remedy of keeping the earnest money deposit is known as:
ASpecific performance
BCompensatory damages
CLiquidated damages✓ Correct
DRescission
Explanation
When the parties agree in advance that a specified sum (earnest money) will serve as damages upon default, this is called liquidated damages. The seller retains the deposit as the agreed-upon remedy.
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