Liquidated damages set out in a sales contract will always be enforced.

Question

Quizplus · Accepted Answer

The enforceability of liquidated damages in a sales contract depends on several factors, including the reasonableness of the damages specified and the jurisdiction's laws governing such clauses. In some cases, courts may choose to invalidate liquidated damages clauses for being excessive or punitive, or because they fail to reflect actual damages suffered by the non-breaching party.

Liquidated Damages Set Out in a Sales Contract Will Always