What are liquidated damages in connection with a contract?
A) damages that are used to punish the non-breaching party
B) damages that are set at a fixed amount in advance in the contract
C) damages that are used when there are no actual damages
D) damages that require approval in advance from the court
E) damages that result in all assets of the breaching party being paid out as damages

Question

Quizplus · Accepted Answer

Liquidated damages refer to damages that are predetermined and agreed upon by both parties in a contract in case of a breach. These damages are set at a fixed amount in advance and do not require proof of actual damages suffered by the non-breaching party. This can help to provide some certainty and predictability in the event of a breach.

What Are Liquidated Damages in Connection with a Contract