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A Liquidation of Damages Clause in a Consumer Contract Is

Question 28

Multiple Choice

A liquidation of damages clause in a consumer contract is enforceable if it:


A) is not in excess of twice the provable damages.
B) is agreed to by both parties to the contract.
C) reasonably attempts to estimate the actual harm caused by a breach.
D) is a reasonable amount designed to punish the breaching party.

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