Which of the Following Is True of Liquidated Damages

question 43

Multiple Choice

Which of the following is true of liquidated damages?

• A) A small amount is awarded by the court to the plaintiff for a breach of contract which causes no financial injury to the plaintiff.
• B) Damages awarded by the court arising from unusual losses, which the parties knew would result from breach of contract.
• C) Damages awarded by the court to put the plaintiff in the same position as if the contract had been performed.
• D) Damages specified in the contract, where real damages for breach of contract are likely to be uncertain.
• E) Courts will enforce these "liquidated" damages to penalize the defendant.

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Definitions:

Loan

Borrowed funds that must be repaid with interest, used by individuals or entities to finance various activities.