Asked by Murali Krishna on May 25, 2024
Verified
Edna Boyle contracts with The Melonville Times to advertise her garage sale to be held this Saturday.The ad is to run in the Friday and Saturday morning edition.If the ad does not run on time,The Melonville Times agrees to pay Edna $50.This liquidated damages clause is most likely enforceable.
Liquidated Damages Clause
A provision in a contract that pre-determines the amount of damages to be paid if one party breaches the agreement.
Enforceable
A term that describes a contract or agreement that can be legally upheld and compelled by the court system.
- Acquire knowledge on the utilisation and enforcement of liquidated damages clauses, including the particular factors that affect their legal standing.
Verified Answer
AP
Andrés PalauMay 31, 2024
Final Answer :
True
Explanation :
An agreement for liquidated damages is enforced if the amount is reasonable and if actual damages would be difficult to prove in the event of a breach of the contract.
Learning Objectives
- Acquire knowledge on the utilisation and enforcement of liquidated damages clauses, including the particular factors that affect their legal standing.
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