Liquidated Damages Are Considered Reasonable If the Amount Is Not

question 9

True/False

Liquidated damages are considered reasonable if the amount is not so large as to be a penalty or so small as to be unconscionable.

---

Definitions:

Net Capital Outflows

The difference between the domestic money invested abroad and the foreign investment within a country over a specific period, indicating the flow of capital across borders.

Net Exports

The value of a country's exports minus its imports, which is a component of a country's gross domestic product.

Domestic Investment

Financial contributions toward assets and projects within one's own country, aimed at enhancing economic growth.

Law of One Price

The economic theory that states that in efficient markets, identical goods should have only one price.