Which of the Following Is a Condition Necessary for an Agreement

question 49

Multiple Choice

Which of the following is a condition necessary for an agreement for liquidated damages to be enforced?

• A) If actual damages would be difficult to prove in the event of a breach of the contract
• B) If the amount is large enough to be considered penal
• C) If the amount is considered unconscionable
• D) If there is no breach of the contract agreed upon by both parties

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Definitions:

Percentage-of-Completion

An accounting method recognizing revenues and expenses of long-term contracts as a percentage of work completed.

Transfer Pricing

The price charged when two parts of the same multinational corporation, often the parent company and a subsidiary in another country, engage in trade with one another.

Transfer Pricing

The setting of prices for transactions between entities under the same corporate umbrella, often used for strategic financial management and tax planning.

Clearing House Interbank

A financial institution providing settlement and clearing services for financial transactions between banks.