Default - Types of Damages

Question 1

What are the three types of damages in a buyer default?

Answer 1

• liquidated damages
• monetary damages
• specific performance

Question 2

What are the three types of damages in the event of a default by seller?

Answer 2

• specific performance
• monetary damages
• refund of earnest money (not liquidated damages)

Question 3

Is acceptance of earnest money from buyer-to-seller liquidated damage?

Answer 3

Yes

Question 4

Is the refund of the earnest money from seller-to-buyer liquidated damage?

Answer 4

No

Question 5

What’s the difference between monetary damages and liquidated damages?

Answer 5

Monetary damages are awarded by the court, liquidated damages are stipulated in the contract.