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Liquidated Damages
Carnack agreements to sell his house and lot to Willard for $100,000. The terms of the agreement call for Willard to pay 10% of the purchase price as a deposit toward the purchase price or as a down payment. The terms further specify that should the buyer breach the contract, Carnack will recall the deposit as liquidated damages. Willard pays the deposit but for the reason that her expected financing of the $90,000 balance falls through she breaches the contract. Two weeks later Carnack vends the house and lot to Balkova for $105,000. Willard demands her $10,000 back however Carnack refuses claiming that Willard's breach and the contract terms enable him to keep the deposit. Deliberate who is correct.
Validate your answer using information from your reading and be sure to:
Deliberate the elements of liquidated damages.
Examine what distinguishes liquidated damages from punitive damages as well as discuss whether or not the penalty be assessed in the above case. As well do analysis if the house was sold for 75,000 instead of 105,000
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