Home Delivery Corporation and Interstate Transport, Inc

Multiple Choice

Home Delivery Corporation and Interstate Transport, Inc., sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is

A) a liquidated damages clause.
B) a mitigation of damages clause.
C) a no-damages clause.
D) a penalty clause.