Asked by Rheanna Chase on Jul 02, 2024
In the contract between Bayson's Department Store and Clem's Manufacturing, there is a clause that allows either party to end the contract on 60-days' notice and the payment of liquidated damages, which are set at a reasonable amount. This clause is
A) a force majeure clause.
B) an option to terminate.
C) a condition subsequent clause.
D) a frustration of contract clause.
E) an example of laches.
Liquidated Damages
Pre-determined damages specified in a contract that the parties agree on as compensation if one party breaches the contract.
Option To Terminate
A provision in a contract that allows one or more parties to end the agreement under certain conditions, before the completion date.
Force Majeure
A major, unforeseen, or unanticipated event that occurs and prevents the performance of a contract.
- Outline the mechanisms and situations that allow for a contract's alteration or dissolution.
- Acquire knowledge about the importance of distinct legal clauses including force majeure, condition subsequent, and frustration as they relate to contracts.
Learning Objectives
- Outline the mechanisms and situations that allow for a contract's alteration or dissolution.
- Acquire knowledge about the importance of distinct legal clauses including force majeure, condition subsequent, and frustration as they relate to contracts.