ContractsCâu 56 / 120
'Liquidated damages' in a purchase contract typically refers to:
a.A penalty imposed by the state on the seller
b.The broker's guaranteed commission
c.The buyer's mortgage interest for the year
d.An amount, often the earnest money, agreed in advance as compensation if the buyer defaults
Giải thích
Liquidated damages are a predetermined amount the parties agree the seller may keep if the buyer defaults, commonly the earnest money deposit. This provides certainty and avoids litigation over actual damages. The amount must be a reasonable estimate, not a punitive penalty.
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Câu hỏi liên quan cùng chủ đề
- An 'executory' contract is one in which:
- A contingency in a purchase contract, such as a financing or inspection contingency, functions to:
- The remedy of 'specific performance' in a real estate contract dispute means:
- When a new party is substituted for an original party to a contract, with the consent of all parties, this is called:
- A listing agreement in which the broker earns a commission only if that broker procures the buyer, but the seller may also sell independently without owing a commission, is a(n):
- Under an 'exclusive right to sell' listing, the listing broker earns a commission:
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