Students canceling their housing contract after occupying their room shall pay damages in of $5.00 per day for the remainder or unexpired portion of the term of the academic agreement, not to exceed $400." This clause in the contract for student housing is a(n):
A)Liquidated Damages Clause
B)Exculpatory Clause
C)Novation
D)Option Contract

Question

Students canceling their housing contract after occupying their room shall pay damages in of $5.00 per day for the remainder or unexpired portion of the term of the academic agreement, not to exceed $400." This clause in the contract for student housing is a(n):​
A)Liquidated Damages Clause
B)Exculpatory Clause
C)Novation
D)Option Contract

Quizplus · Accepted Answer

This clause is a Liquidated Damages Clause because it specifies a predetermined amount of damages ($5.00 per day, up to $400) that a student must pay if they cancel their housing contract after occupying their room, which is a common feature of liquidated damages clauses to provide a clear, agreed-upon penalty for breach of contract.

Students Canceling Their Housing Contract After Occupying Their Room Shall