Pattern, Inc. enters into a contract to deliver 10,000 units of raw materials to Phoebus, Inc. Pattern delivers the raw materials two days after the delivery date. Pattern offers to pay damages based on a clause in the contract. What type of damages is Pattern paying?
A) liquidated
B) compensatory
C) punitive
D) nominal

Question

Quizplus · Accepted Answer

Liquidated damages are pre-determined amounts specified in a contract that a party agrees to pay if they breach the contract, such as delivering goods late.