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.