The Amount of Liquidated Damages Included in a Contract That

Multiple Choice

The amount of liquidated damages included in a contract that would be upheld by a court:

A) must be reasonable in light of the inconveniences or lack of feasibility of obtaining an adequate remedy.
B) may be so high as to be punitive to the breaching party.
C) may be regarded as a penalty.
D) must be exactly the amount lost in the breach.