Which Statement Is True Regarding a Liquidated Damages Clause

question 31

Multiple Choice

Which statement is true regarding a liquidated damages clause?

• A) A provision for liquidated damages is illegal.
• B) A provision for liquidated damages is void because of public policy.
• C) A provision for liquidated damages is voidable because of public policy.
• D) A provision for liquidated damages is enforceable so long as it is not punitive in nature.
• E) A provision for liquidated damages will be enforced regardless of whether it is punitive in nature.

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Definitions:

Inflammation

A biological response to harmful stimuli, such as pathogens or damaged cells, leading to redness, swelling, pain, and heat in the affected tissues.

Hapten

Small molecule that binds to a large molecule; together they stimulate the specific immune system.

Allergic Reaction

An immune response to a substance that is normally harmless, resulting in symptoms like itching, swelling, and difficulty breathing.

Antibody

Protein found in the plasma that is responsible for humoral immunity; binds specifically to antigen.