Tom and Nancy enter into a written contract for the sale of a dollhouse that Tom will custom-make for Nancy.In the contract,Nancy agrees to pay $350 if she breaks the contract.This sum of money is known as:

A) mitigation of damages.
B) speculative damages.
C) equitable remedy.
D) liquidated damages.

Liquidated Damages

Damages agreed to by the parties to a contract in the event of a breach.

Custom-Make

To create or manufacture something according to specific requirements or specifications.

Dollhouse

A miniature replica of a house, often used as a child's toy, which can be furnished and decorated to simulate a household.