Asked by Sharion Dielle on May 21, 2024
Verified
Which type of damages would occur if the parties specify in advance the amount of losses or a formula in assessing the losses against the breaching party?
A) Consequential
B) Punitive
C) Liquidated
D) Nominal
E) Statutory
Liquidated Damages
A contractual provision that determines in advance the amount of damages to be paid if a party breaches the contract.
Breaching Party
The party in a contract who fails to fulfill their contractual obligations, thereby violating the agreement.
- Recognize the different forms of legal and equitable remedies and damages present in contract law.
Verified Answer
TB
Tessa BanksMay 22, 2024
Final Answer :
C
Explanation :
Typically,the court determines the amount of damages to which a nonbreaching party is entitled.Sometimes,however,the parties recognize that if a breach of contract occurs,it will probably be somewhat difficult for the court to determine exactly what the damages are.To prevent a difficult court battle,the parties may specify in advance what the liquidated damages will be if there is a particular kind of breach.
Learning Objectives
- Recognize the different forms of legal and equitable remedies and damages present in contract law.
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