Which Statement Best Expresses the Position Taken by the Courts

Multiple Choice

Which statement best expresses the position taken by the courts with respect to contractual penalty clauses?

A) The court will enforce if it is meant to scare the other party into timely performance.
B) Such a clause is enforceable only if it fits the definition of a liquidated damages clause.
C) Such clauses are always enforceable provided the other party has sufficient notice.
D) Such clauses are enforceable provided they are in writing.