medium · National Real Estate Exam contracts
A purchase agreement states: 'In the event of buyer default, the seller may retain the earnest money as liquidated damages, OR may sue for specific performance.' This means:
- The contract is void for being far too vague to enforce.
- The buyer, not the seller, gets to decide which remedy applies here.
- The seller must choose one remedy to the exclusion of the other.
- The seller may pursue both remedies at the same time without electing one.
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