Clauses Which Determine the Sum Payable by the Contract Breaker

question 6

True/False

Clauses which determine the sum payable by the contract breaker in the event of breach are only enforceable if the sum stipulated is a genuine pre-estimate of the loss likely to be caused by the breach.

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Definitions:

Strategic Proactivity

An approach whereby an organization anticipates future challenges or opportunities and actively shapes its strategies to address them.

Civil Corporation

A corporation that integrates social and environmental concerns in its business operations and interactions with its stakeholders.

Corporate Governance

The set of guidelines, procedures, and systems used to govern and manage a corporation.

Transparent Decision Making

A principle in which the rationale behind decisions is openly shared with relevant stakeholders to foster trust and inclusivity.