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:

Receptive

Being open and willing to accept new ideas or suggestions.

Credibility

The quality or power of inspiring belief or trust in others, often based on expertise, reliability, and honesty.

Mixed Signals

Type of message in which the sender might recommend one thing to others yet behave in another way.

Defensive Communication

Tendency to receive messages in such a way that one’s self-esteem is protected.