Carla Wolfe Orders Some Inventory from Supplex Co

question 6

Multiple Choice

Carla Wolfe orders some inventory from Supplex Co. Carla calculates that if Supplex is late in delivery, she will lose about $100 a day in profits. They agree to specify in the purchase order that Supplex will pay Carla $100 a day if late. What is this clause called?

• A)Penalty clause
• B)Liquidated damages clause
• C)Pre-estimated clause
• D)Guarantee clause
• E)Defeasance clause

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