Bill Buyer and Sam Seller have a contract with an Inspection Objection Deadline of May 1. Bill undertakes inspections and notifies Sam on the morning of May 2 that he objects to a hole in the roof and asks Sam to repair it. Sam refuses to fix it. What are the parties' rights? The contract has a liquidated damages provision.
A) Bill can terminate the contract but will lose his earnest money deposit.
B) Sam must still fix the problem if it is a nominal cost, or Sam will be in default.
C) Sam can terminate, but Bill still does not get his earnest money back.
D) Bill can terminate, but will get his deposit back since Sam will not fix the problem.