Contracts
A Wyoming buyer defaults on a purchase agreement. The seller's remedy of 'liquidated damages' means:
AThe seller can sue for all lost profits
BThe seller retains the earnest money as the agreed-upon compensation✓ Correct
CThe court awards damages based on the property's market value
DThe seller must sell to another buyer immediately
Explanation
When a contract includes a liquidated damages clause, the seller's remedy upon the buyer's default is limited to retaining the earnest money deposit as pre-agreed compensation, rather than pursuing additional damages through litigation.
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