Which of the Following Statements Is Not True of Liquidated

Multiple Choice

Which of the following statements is not true of liquidated damages?

A) They must be reasonably related to the damages that may be suffered if the contract is not fulfilled.
B) They may not be designed to serve as a penalty to deter a party from breaching a contract.
C) They are a form of compensatory damages.
D) They may be designed to serve as a penalty to deter a party from breaching a contract.