A buyer in Montgomery County defaults on a PA Agreement of Sale. The seller wants to pursue both liquidated damages (retaining the hand money) AND actual damages through a lawsuit. Under PA law, can the seller do both?
Correct Answer
B) No, the seller generally must choose between liquidated damages and actual damages
Under Pennsylvania law, the seller generally must elect between liquidated damages (retaining the hand money) and pursuing actual damages through a lawsuit. The seller typically cannot recover both the full liquidated damages amount and full actual damages, as this could result in a double recovery.
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