Which of the following statements concerning liquidated damages is NOT TRUE?
A)A liquidated damages clause will be enforced,if,when the contract was made,it was difficult to estimate actual damages.
B)The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach.
C)Nominal damages are not the same thing as liquidated damages.
D)Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.

Question

​Which of the following statements concerning liquidated damages is NOT TRUE?
A)​A liquidated damages clause will be enforced,if,when the contract was made,it was difficult to estimate actual damages.
B)​The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach.
C)​Nominal damages are not the same thing as liquidated damages.
D)​Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.

Quizplus · Accepted Answer

Liquidated damages are meant to be a reasonable forecast of actual damages that might result from a breach, not a penalty. If the amount is punitive rather than compensatory, it is generally not enforceable.

​Which of the Following Statements Concerning Liquidated Damages Is NOT

Which of the Following Statements Concerning Liquidated Damages Is NOT