Asked by Malusi Pakade on May 07, 2024
Verified
Tom and Nancy enter into a written contract for the sale of a dollhouse that Tom will custom-make for Nancy.In the contract,Nancy agrees to pay $350 if she breaks the contract.This sum of money is known as:
A) mitigation of damages.
B) speculative damages.
C) equitable remedy.
D) liquidated damages.
Liquidated Damages
Damages agreed to by the parties to a contract in the event of a breach.
Custom-Make
To create or manufacture something according to specific requirements or specifications.
Dollhouse
A miniature replica of a house, often used as a child's toy, which can be furnished and decorated to simulate a household.
- Distinguish and comprehend the differences among diverse damages and remedies accessible to parties suffering harm in a contractual context.
Verified Answer
CG
Charles GipsonMay 11, 2024
Final Answer :
D
Explanation :
The sum of money agreed upon in the contract that Nancy will pay if she breaks the contract is known as liquidated damages. It is a predetermined amount agreed upon by both parties as the amount of compensation for any breach of contract.
Learning Objectives
- Distinguish and comprehend the differences among diverse damages and remedies accessible to parties suffering harm in a contractual context.
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