The General Requirements for a Liquidated Damages Clause to Be

Multiple Choice

The general requirements for a liquidated damages clause to be enforceable are which of the following?

A) Actual damages are difficult to determine and the liquidated damages amount is reasonable.
B) Actual damages exceed the amount foreseen by the parties.
C) The liquidated damages clause applies only to unforeseeable damages.
D) The breaching party used its best efforts to avoid a breach of the contract.
E) The parties have rescinded the contract.