Carla Wolfe Orders Some Inventory from Supplex Co

Multiple Choice

Carla Wolfe orders some inventory from Supplex Co. Carla calculates that if Supplex is late in delivery, she will lose about $100 a day in profits. They agree to specify in the purchase order that Supplex will pay Carla $100 a day if late. What is this clause called?

A) Penalty clause
B) Liquidated damages clause
C) Pre-estimated clause
D) Guarantee clause
E) Defeasance clause