ContractsContract_default_earnest_money_and_remediesEASY
An Illinois exam-prep workbook gives this calculation. Quinn Bennett signed an Illinois purchase contract in Bloomington for $610,000.00. The contract requires earnest money equal to 1.0% of the price, and the parties later sign a release allowing the seller to keep the earnest money as liquidated damages. How much earnest money is involved?
Correct Answer
C) $6,100.00
Multiply $610,000.00 by the stated percentage. That produces $6,100.00.
Answer Options
A
$6,600.00B
$5,600.00C
$6,100.00D
$7,100.00Why This Is the Correct Answer
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Background Knowledge for Contracts
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Related Topics & Key Terms
Key Terms:
breach_remedies_ilcalculationcontract_default_earnest_money_and_remediescontractsdifficulty_1earnest_moneyillinois_stateliquidated_damagesmath
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