The amount of liquidated damages included in a contract that would be upheld by a court:
A) may be regarded as a penalty.
B) must be reasonable in light of the inconveniences or lack of feasibility of obtaining an adequate remedy.
C) may be so high as to be punitive to the breaching party.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Liquidated damages must be a reasonable estimate of the actual damages that might result from a breach, and not so high as to be punitive, otherwise they may be regarded as a penalty and not be upheld by a court.

The Amount of Liquidated Damages Included in a Contract That