Which type of damages would occur if the parties specify in advance the amount of losses or a formula in assessing the losses against the breaching party?
A)Consequential
B)Punitive
C)Liquidated
D)Nominal
E)Statutory

Question

Quizplus · Accepted Answer

Typically,the court determines the amount of damages to which a nonbreaching party is entitled.Sometimes,however,the parties recognize that if a breach of contract occurs,it will probably be somewhat difficult for the court to determine exactly what the damages are.To prevent a difficult court battle,the parties may specify in advance what the liquidated damages will be if there is a particular kind of breach.

Which Type of Damages Would Occur If the Parties Specify