A buyer in Fort Lauderdale breaches a residential purchase contract by refusing to close without legal justification. The contract contains a liquidated damages clause equal to the earnest money deposit of $5,000. What is the seller's most likely remedy?
Correct Answer
C) Keep the earnest money as the exclusive remedy
When a valid liquidated damages clause exists in Florida residential contracts, it typically serves as the exclusive remedy, meaning the seller keeps the earnest money but cannot pursue additional damages. A is incorrect because liquidated damages are usually exclusive. B is incorrect because the seller would keep, not return, the earnest money. D is incorrect because the seller doesn't get to choose - the liquidated damages clause governs as the exclusive remedy.
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