Which One of the Following Statements Accurately Describes the Effect

question 25

Multiple Choice

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

• A) This clause requires the injured party to take all reasonable steps to lessen (mitigate) his losses.
• B) The plaintiff will likely be awarded a judgment for all the damages that naturally and directly flow from the breach.
• C) The court will award the amount specified only if it accurately reflects the losses that actually took place.
• D) The court will likely award the amount set out in the clause if it considers that to be a genuine estimate by the parties of the likely consequences of a breach.
• E) Liquidated damages only apply to losses caused by excess water, such as floods or tidal waves.

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Definitions:

Physical Distractions

External stimuli in the environment that can interrupt or hinder an individual's focus or concentration.

Channel Limits

The constraints or limitations inherent in a communication medium that affect the flow or quality of information.

Status

The relative social, professional, or other standing of someone or something.

Communication

The exchange of information, ideas, or feelings among individuals through various forms such as speech, writing, or symbols.