Which of the following statements is true of liquidated damages?
A) They are the damages awarded by a court to a plaintiff for a breach of contract that causes no financial injury to the plaintiff.
B) They are the damages awarded by a court arising from unusual losses, which the contracting parties knew would result from a breach of contract.
C) They are the damages awarded by a court to put a plaintiff in the same position as if a contract had been performed.
D) They are the damages specified in a contract when real damages for breach of contract are likely to be uncertain.
E) They are the damages enforced when a party to a contract incurs damages even after getting an injunction.

Question

Quizplus · Accepted Answer

Liquidated damages are the damages specified in a contract when real damages for breach of contract are likely to be uncertain. Courts will enforce these liquidated damages unless they seem to penalize the defendant instead of merely compensating a plaintiff for uncertain losses.

Which of the Following Statements Is True of Liquidated Damages