The Parties to a Contract May Specify a Reasonable Amount

question 28

Multiple Choice

The parties to a contract may specify a reasonable amount to be paid in the event of a future breach of the contract, which is called______ damages.

• A) consequential
• B) liquidated
• C) punitive
• D) compensatory

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Definitions:

Emotional

Pertaining to one's feelings or affective states, often influencing mood, behavior, and cognitive processes.

Convergent Thinking

A cognitive process in which a person attempts to find a single, correct answer to a problem.

Divergent Thinking

An intellectual strategy or procedure aimed at developing original ideas through the examination of various options.

Transformational Logic

A theory or process of changing one structure into another, often used in linguistic and mathematical contexts to describe systematic changes.