A section of a contract which provides that, in the event of default, the purchaser is entitled to $10,000 from the seller is known as a
A) rescission provision.
B) "time is of the essence" provision.
C) specific performance provision.
D) liquidated damage provision.

Question

Quizplus · Accepted Answer

A liquidated damage provision specifies a predetermined amount of money that must be paid as damages in the event of a contract breach, such as a default.

A Section of a Contract Which Provides That, in the Event