Which of the Following Holds True in Case of Liquidated

Multiple Choice

Which of the following holds true in case of liquidated damages?

A) For liquidated damages to be lawful, the actual damages must be precisely determined.
B) Liquidated damages are enforceable even if actual damages are later determined to be different.
C) A liquidated damages clause is considered a penalty if actual damages are not determinable in advance.
D) If a liquidated damages clause is found to be a penalty, it continues to be enforceable.