Which of the following is a condition necessary for a liquidated damages agreement to be enforced?
A)If actual damages would be difficult to prove in the event of a breach of the contract
B)If the amount is large enough to be considered penal
C)If the amount is considered unconscionable
D)If there is no breach of the contract agreed upon by both parties

Question

Quizplus · Accepted Answer

An agreement for liquidated damages is enforced if the amount is reasonable and if actual damages would be difficult to prove in the event of a breach of the contract.

Which of the Following Is a Condition Necessary for a Liquidated