Which of the Following Statements Is TRUE

question 3

Multiple Choice

Which of the following statements is TRUE?

• A)Liquidated damages are always available if the defendant breached a contract for the sale of land.
• B)Liquidated damages are enforceable if they represent a genuine estimate of the losses that the plaintiff might have suffered as a result of the defendant's breach.
• C)A judge will award more than a liquidated damages clause provides for, but only if the plaintiff suffered a larger loss as a result of the defendant's breach.
• D)The plaintiff cannot recover the full amount of liquidated damages if it suffered a smaller loss as a result of the defendant's breach.
• E)Because of the risk of unfairness, liquidated damages are never allowed unless the defendant received independent legal advice at the time that the contract was created.

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Definitions:

Injunctions

Court orders that require an individual or entity to do or to cease doing a specific action.

Property Rights

Legal rights that individuals or entities have over tangible and intangible property, including the right to use, sell, rent, and exclude others from it.

Business Actions

Decisions or movements made by a company or organization in pursuit of its business goals and objectives, including strategic planning, operations, and reactions to market changes.

Individual Liberty

The rights and freedoms of individuals to act and express themselves freely, without undue interference or restriction.