A Construction Contractor Entered into a Contract to Build a Family

question 114

Multiple Choice

A construction contractor entered into a contract to build a family room addition onto Harry's home for $25,000.In order to encourage timely performance,the agreement provided that the contractor would be penalized $5,000 as liquidated damages for each day that the project was late in getting finished.The contractor was 30 days late in finishing the project,but otherwise met the terms of the agreement.What is most likely in this situation?

• A) The liquidated damages clause would not be enforced due to its being excessive.
• B) The liquidated damages clause would be limited to $25,000, the amount of the contract price.
• C) The liquidated damages clause would be enforced.
• D) The liquidated damages clause would not be enforced because the parties made a mutual mistake about when the contract would be finished.
• E) The liquidated damages clause would be enforced only if it can be shown that the contractor has made that much in profits over the past six months.

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Definitions:

Esophagus

The muscular tube that carries food and liquids from the throat to the stomach.

Pharynx

A muscular tube that serves as a pathway for the movement of food from the mouth to the esophagus and for air from the nose and mouth to the larynx.

Integumentary System

The bodily system consisting of the skin, hair, nails, and exocrine glands; it protects the body from external damage and regulates temperature.