Conrad Contracts to Sell His House and Lot to Winifred

Multiple Choice

Conrad contracts to sell his house and lot to Winifred for $100,000. The terms of the purchase agreement require Winifred to pay 10 percent of the purchase price as a deposit toward the purchase price. The terms further stipulate that should the buyer breach the contract, the deposit will be retained by Conrad. Such a good faith deposit is called:​

A) Liquidated damages
B) A mortgage
C) PMI
D) Equity