Nerdo Computers Had an Insurance Policy on Its Premises, for Which

Multiple Choice

Nerdo Computers had an insurance policy on its premises, for which it paid a premium of $525 per year. It found a new broker who offered a much lower rate, so it wrote to its current broker to cancel its existing policy. The broker replied that there would be a $100 cancellation fee. Which of the following facts or arguments would help Nerdo avoid having to pay the fee?

A) If the fee is not mentioned in the contract
B) If the fee can be characterized as a penalty
C) If the fee is not a genuine pre-estimate of damages.
D) Both B and C
E) All of the above