Where the Parties to a Contract Agree in Advance on an Amount

question 60

Multiple Choice

Where the parties to a contract agree in advance on an amount of damages to be paid in the event of a breach,in order for the damages to be effective

• A)they can be any amount agreed on by the parties,who are presumed to know what they have contracted for.
• B)they must be reasonable in the context of the contract.
• C)they must be meant to penalize the party committing the breach.
• D)they must relate solely to the breach,without regard to penalty or reasonableness.
• E)none of the above

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Definitions:

Hydrogenation

The chemical reaction between molecular hydrogen (H2) and another compound or element, typically in the presence of a catalyst, resulting in the addition of hydrogen.

Bredt's Rule

A principle in organic chemistry stating that bridgehead carbon atoms cannot possess double bonds if the ring system is small due to excessive angle strain.

2-Butanol

An organic chemical compound, a secondary alcohol, with the formula CH3CH(OH)CH2CH3, characterized by a hydroxyl group attached to the second carbon of a butane chain.

Butane

A gas compound known as C4H10, which can be found in two different structural variations, utilized for fuel and cooling purposes.