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Copper Conduit,Inc

Question 58

Multiple Choice

Copper Conduit,Inc.,and Dependable Electric Company sign an agree-ment that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti-mate but approximately $1,000." This is


A) a liquidated damages clause.
B) a mitigation-of-damages clause.
C) a waiver-of-breach clause.
D) a penalty clause.

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