Where the Parties to a Contract Agree in Advance on an Amount

question 60

Multiple Choice

Where the parties to a contract agree in advance on an amount of damages to be paid in the event of a breach,in order for the damages to be effective

• A)they can be any amount agreed on by the parties,who are presumed to know what they have contracted for.
• B)they must be reasonable in the context of the contract.
• C)they must be meant to penalize the party committing the breach.
• D)they must relate solely to the breach,without regard to penalty or reasonableness.
• E)none of the above

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Definitions:

Ego

A component of Sigmund Freud's psychoanalytic theory, representing the rational part of the psyche that mediates between the desires of the id and the morals of the superego.

Latin

An ancient Italic language of the Roman Empire, used historically in scholarship and as a liturgical language of the Catholic Church.

Projection

Psychological defense mechanism in which unacceptable or threatening impulses or feelings are seen as originating with someone else, usually the target of the impulses or feelings.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and to maintain self-image.