Parties to a Contract Agree in Advance to Pay ________

question 68

Multiple Choice

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

• A) nominal
• B) compensatory
• C) liquidated
• D) consequential

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Definitions:

Accounts Receivable

The amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Card Expense

Expenses incurred by using a credit card, typically involving interest charges and other fees.

Administrative Expense

Costs related to the general operation and administration of a business, including salaries of executive staff, office supplies, and utilities, but not directly tied to production or sales.

Promissory Note

A financial instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand.