ContractsContract_default_earnest_money_and_remediesHARD
An Illinois purchase contract states that upon mutual release, the earnest money of $15,000.00 will be divided with the seller receiving 60% and the buyer receiving the remaining 40%. The seller's share would also be subject to a $500.00 administrative processing fee deducted from the seller's portion before disbursement. How much would the seller net after the processing fee?
Correct Answer
A) $8,500.00
Step 1: Calculate the seller's 60% share of the $15,000.00 earnest money: $15,000.00 × 0.60 = $9,000.00. Step 2: Deduct the $500.00 administrative processing fee from the seller's share: $9,000.00 − $500.00 = $8,500.00. The seller nets $8,500.00 after the fee deduction.
Answer Options
A
$8,500.00B
$9,000.00C
$8,750.00D
$8,250.00Why This Is the Correct Answer
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Background Knowledge for Contracts
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Key Terms:
breach_remedies_ilcalculationcontract_default_earnest_money_and_remediescontractsdifficulty_5earnest_moneyescrow_releaseillinois_statemath
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