A Liquidation of Damages Clause Is Valid If It

question 24

Multiple Choice

A liquidation of damages clause is valid if it:

• A) is not in excess of twice the provable damages.
• B) is agreed to by both parties to the contract.
• C) reasonably attempts to estimate the actual harm caused by a breach.
• D) is a reasonable amount designed to punish the breaching party.

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Definitions:

Behaviorism

A branch of psychology that studies observable behaviors, emphasizing the role of environmental factors in shaping behavior.

Cognitive Development

Refers to the progressive and ongoing growth of perception, memory, imagination, and problem-solving skills.

Concrete Operational

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 7 and 12, during which children gain the ability to think logically about concrete events.

Sensorimotor

Referring to a developmental stage in children characterized by the coordination of sensory experiences with motor actions.