If a Liquidated Damages Clause Is Found to Be a Penalty,the

question 29

True/False

If a liquidated damages clause is found to be a penalty,the non-breaching party may then recover actual damages.

---

Definitions:

Time Inconsistency

is a situation where a person's preferences change over time, such that what they choose today may differ from what they will choose in the future, often leading to decision-making challenges.

Present

The current moment or period in time.

Future

Refers to the time that is yet to come, also used in finance as a contract to buy or sell an asset at a predetermined future date and price.

Time Inconsistency

A situation where a decision-maker's preferences change over time, making plans formulated at one time incompatible or less desirable at a future time.