The General Requirements for a Liquidated Damages Clause to Be

question 30

Multiple Choice

The general requirements for a liquidated damages clause to be enforceable are that:

• A) actual damages are difficult to determine and the liquidated damages amount is reasonable.
• B) actual damages exceed the amount foreseen by the parties.
• C) the liquidated damages clause applies only to unforeseeable damages.
• D) the breaching party used its best efforts to avoid a breach of the contract.
• E) the parties have rescinded the contract.

---

Definitions:

Specific Nerve Energies

The concept that different sensory nerves convey specific qualities of sensations to the brain, such as sight or sound.

Dualism

A philosophical concept that sees mind and body as two distinct entities that interact and influence each other.

Brain

The central organ of the human nervous system, responsible for thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.

Reflex Arc

A neural pathway that mediates an automatic response to a stimulus, involving sensory input and motor output without conscious thought.