Brianna Contractually Agreed to Sell a Widget to Oren

Multiple Choice

Brianna contractually agreed to sell a widget to Oren.She was required to deliver the item on June 1 and he was required to pay $75 000 on the same day.Paragraph 21 of the contract said that if Brianna breached the contract by refusing to deliver the item, Oren would be entitled to a payment of $20 000.Brianna did, in fact, refuse to deliver the widget.Oren therefore has not yet paid the price.Which of the following statements is most likely to be TRUE?

A) If Oren suffered a loss of $15 000 as a result of Brianna's breach, he will be entitled to payment of that amount if paragraph 21 of the contract was a penalty.
B) If Oren suffered a loss of $10 000 as a result of Brianna's breach, he will be entitled to payment of $20 000 if paragraph 21 of the contract was a penalty.
C) If Oren suffered a loss of $30 000 as a result of Brianna's breach, he will be entitled to payment of that amount if paragraph 21 of the contract was for liquidated damages.
D) If Oren suffered a loss of $10 000 as a result of Brianna's breach, he will be entitled to payment of that amount and no more if paragraph 21 of the contract was for liquidated damages.
E) If Oren suffered a loss of $20 000, and the court classified paragraph 21 as liquidated damages, then Brianna would be liable to pay $95 000.