What Is the Legal Term Given to a Provision in a Contract

question 5

Multiple Choice

What is the legal term given to a provision in a contract whereby the parties agree in advance the amount to be paid in the event of a contract breach?

• A) an applied term
• B) a liquidated damages clause
• C) a punitive clause
• D) an exemption clause

---

Definitions:

Stress Protection

Strategies or factors that shield individuals from the negative effects of stress.

External Locus

Refers to the belief that outside forces, rather than personal actions, control one's life circumstances.

Locus of Control

A psychological concept that refers to individuals’ beliefs about the extent to which their actions influence the rewards and consequences they experience.

Stable Worldview

A consistent and unchanging perspective or set of beliefs about the world and one's place within it.