Parties to a Contract May Specify in Advance the Amount

Multiple Choice

Parties to a contract may specify in advance the amount of damages that must be paid in case of breach. These liquidated damages​

A) are generally payable in a liquid form (for example oil, or solvents, or alcoholic beverages) .
B) are enforceable if they are a penalty designed to frighten parties into performance as agreed.
C) must be reasonable and not a penalty. They reflect the difficulty of assessing the actual or anticipated damages that would be caused by any future breach.
D) are most appropriate when actual damages will be easy to calculate.