Which of the Following Statements Is TRUE

question 10

Multiple Choice

Which of the following statements is TRUE?

• A) The plaintiff cannot recover the full amount of liquidated damages if it suffered a smaller loss as a result of the defendant's breach.
• B) The plaintiff can recover more than liquidated damages if it suffered a larger loss as a result of the defendant's breach.
• C) Because of the risk of unfairness, liquidated damages are never allowed unless the defendant received independent legal advice at the time that the contract was created.
• D) Liquidated damages are always available if the defendant breached a contract for the sale of land.
• E) Liquidated damages are enforceable if they represent a genuine estimate of the losses that the plaintiff might have suffered as a result of the defendant's breach.

---

Definitions:

Irrational Escalation

The phenomenon where individuals increase their investment in a decision based on the cumulative prior investment, despite new evidence suggesting that the decision was probably wrong.

Fixed Pie

A misconception in negotiations where parties incorrectly believe that their interests are directly opposed, assuming that one party's gain is the other's loss.

Reframing

The process of changing the perspective or context of a situation to view it in a new light.

Thrust, Tone

The main direction, force, or emphasis of a discourse or negotiation, along with the mood or attitude conveyed through it.