Damages Agreed to by the Parties When the Contract Is

question 5

Short Answer

Damages agreed to by the parties when the contract is written and prior to any actual breach are called _______ damages.

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Definitions:

Units-Of-Output

A depreciation method that allocates the cost of an asset over its useful life based on the units it produces, reflecting the asset's wear and tear more accurately.

Straight-Line

A method of calculating depreciation or amortization by evenly distributing an asset's cost over its useful life.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which allocates an equal amount of the asset’s cost to each year of its useful life.

Residual Value

The projected worth of an asset at the conclusion of its service life, considering the deductions for depreciation.