Which Is NOT a Correct Statement Concerning a Liquidated Damages

question 40

Multiple Choice

Which is NOT a correct statement concerning a liquidated damages clause?

• A) If the clause is enforced, the injured party can collect no more than the amount specified.
• B) If the clause is enforced, the injured party has a choice between compensatory damages or liquidated damages.
• C) It must be possible to determine actual damages.
• D) The amount of liquidated damages are established by the parties to the contract.

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