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Which One of the Following Statements Accurately Describes the Effect

Question 134

Multiple Choice

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?


A) The plaintiff will likely be awarded a judgment for all damages that "naturally and directly flow" from the breach.
B) The court will likely award the amount set out in the clause if it considers that to be a genuine estimate by the parties of the likely consequences of the breach.
C) This clause conclusively determines the amount of damages that the court can award.
D) Liquidated damages only apply to losses caused by excess water,such as floods or tidal waves.
E) This clause requires the injured party to take all reasonable steps to mitigate (lessen) his or her losses.

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