Damages that are fixed in the contract for the amount to be awarded in the event of a breach are known as:
A) punitive damages.
B) liquidated damages.
C) consequential damages.
D) conditional damages.
E) incidental damages.

Question

Quizplus · Accepted Answer

The damages that are fixed in the contract for the amount to be awarded in the event of a breach are called liquidated damages. Punitive damages are awarded to punish the wrongdoer, consequential damages are damages that arise as a result of particular circumstances or situations, conditional damages are damages that are contingent upon a specific condition being met, and incidental damages are extra expenses or losses that arise as a result of a breach.

Damages That Are Fixed in the Contract for the Amount