Asked by Alyssa Currie on May 11, 2024
Verified
Which of the following is a condition necessary for a liquidated damages agreement to be enforced?
A) If actual damages would be difficult to prove in the event of a breach of the contract
B) If the amount is large enough to be considered penal
C) If the amount is considered unconscionable
D) If there is no breach of the contract agreed upon by both parties
Liquidated Damages Agreement
A contractual provision that pre-determines the amount of damages to be paid if a party breaches the agreement.
Penal
Pertaining to punishment or penalties imposed for violations of laws or regulations.
- Comprehend the application and execution of liquidated damages provisions, and the specific aspects that determine their validity.
Verified Answer
DM
Denise MujicaMay 14, 2024
Final Answer :
A
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
- Comprehend the application and execution of liquidated damages provisions, and the specific aspects that determine their validity.
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