A seller entered into a written land sale contract with a buyer on May 20, whereby the seller agreed to sell a home to the buyer for $60,000. The closing date was set at August 1. The buyer put up $6,000 as earnest money, as provided by the contract. The contract stated that if the buyer failed to perform by tendering the balance due on the house on August 1, the $6,000 could be treated as liquidated damages "at the option of the seller." On July 21, the week before the closing, the house burned to the ground because of a freak lightning strike during a thunderstorm. When August 1 arrived, the buyer refused to tender $54,000 to the seller. The buyer asked the seller for the refund of his earnest money because the house had been destroyed. The seller refused and filed suit, asking for specific performance. The buyer countersued, demanding a refund of the $6,000 earnest money. How should the court rule on the suits