Which of the following statements is incorrect concerning liquidated damages?
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

Quizplus · Accepted Answer

Liquidated damages are only enforceable if the amount is a reasonable estimation of the actual harm resulting from a breach. If the amount is considered to be a penalty on the breaching party, the liquidated damages clause may be unenforceable.

Which of the Following Statements Is Incorrect Concerning Liquidated Damages