Three months ago, Bert agreed in writing to buy Sam's single-family residence, Liveacre, for $110,000. Bert paid Sam a $5,000 deposit to be applied to the purchase price. The contract stated that Sam had the right at his option to retain the deposit as liquidated damages in the event of Bert's default. The closing was to have taken place last week. Six weeks ago, Bert was notified by his employer that he was to be transferred to another job 1,000 miles away. Bert immediately notified Sam that he could not close, and therefore he demanded the return of his $5,000. Sam refused, waited until after the contract closing date, listed with a broker, and then conveyed Liveacre for $108,000 to Conner, a purchaser found by the real estate broker. Conner paid the full purchase price and immediately recorded his deed. Conner knew of the prior contract with Bert. In an appropriate action, Bert seeks to recover the $5,000 deposit from Sam. The most probable result will be that Sam 
must return the $5,000 to Bert, because Sam can no longer carry out his contract with Bert.  must return the $5,000 to Bert, because Bert was legally justified in not completing the contract.  must return $3,000 to Bert, because Sam's damages were only $2,000.  may keep the $5,000 deposit, because Bert breached the contract. 