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Which of the Following Will Be Used in Determining the Enforceability

Question 39

Multiple Choice

Which of the following will be used in determining the enforceability of a liquidated damages clause in a contract?


A) The naming of the clause a "liquidated damages clause".
B) A statement by the parties that if the contract is breached a set amount of money will be paid by the party in breach to the innocent party.
C) An acknowledgement in the clause that the damages set out are a realistic estimate of loss.
D) At the time of making the contract the dollar amount is a genuine pre-estimate of the damages that would result from a breach.
E) A statement in the clause that the damages payable are not a penalty.

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