Upside Software Development Ltd

question 23

Multiple Choice

Upside Software Development Ltd.has agreed in its contract to pay damages of $500 per day for each day that it is late in delivering the agreed upon software program to its client.What is this type of contract clause?

• A) a condition precedent
• B) a limitation of liability clause
• C) a liquidated damages clause
• D) an exemption clause

---

Definitions:

Net Method

An accounting method for recording purchases at the net of any trade discounts or rebate.

Discount Period

The amount of time the bank holds a note that was discounted until the maturity date.

Voucher System

A control mechanism in accounting that uses vouchers to record transactions and control disbursements.

Periodic System

Another term for the periodic inventory method, emphasizing its cyclical approach to inventory management and cost determination.