Contracts

Under West Virginia law, liquidated damages in a purchase contract are:

APenalties assessed by the court
BA predetermined amount (often the earnest money) that the non-breaching party may retain if the other party defaults✓ Correct
CDamages calculated at closing by an attorney
DRefundable to the buyer in all cases

Explanation

Liquidated damages are a pre-agreed remedy for breach, typically allowing the seller to keep the earnest money if the buyer defaults. They must represent a reasonable estimate of actual damages.

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