A Liquidated Damage Clause Is Unenforceable If ________

question 67

Multiple Choice

A liquidated damage clause is unenforceable if ________.

• A) the actual damages are impractical to determine
• B) the liquidated damages clause is considered a penalty
• C) the liquidated damages are conscionable
• D) the liquidated damages do not result in a loss of money for the nonbreaching party

---

Definitions:

Long Term

Refers to a period that extends over a significant length of time, often implying stability or commitment in financial, strategic, or planning contexts.

Mutually Exclusive

Describes two or more events that cannot occur at the same time in a given experiment or situation.

Event A

A generic term used to describe a particular outcome or set of outcomes within a probability space or experiment.

Event B

An occurrence or outcome within a statistical experiment to which a probability can be assigned.