If a Liquidated Damages Clause Demands an Unusually Large Sum

question 38

Multiple Choice

If a liquidated damages clause demands an unusually large sum that is not related to reasonably-anticipated actual damages, the clause will be held to be void as a(n) :

• A) penalty.
• B) unliquidated damages clause.
• C) extortion
• D) blackmail

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Definitions:

Personal Unconscious

In Jungian psychology, the portion of the unconscious mind containing an individual's thoughts, memories, and feelings that are not readily accessible.

Repressed Thoughts

Ideas, memories, or desires that are unconsciously kept out of conscious awareness due to being deemed unacceptable or uncomfortable.

Defense Mechanism

Mental techniques used by people to deal with reality and sustain their perception of themselves.

Sublimation

A defense mechanism proposed by psychoanalytic theory, where socially unacceptable impulses or ideals are transformed into socially acceptable actions or behaviors, often resulting in a long-term conversion of the initial impulse.