Which of the Following Hold True in a Case of Liquidated

question 60

Multiple Choice

Which of the following hold true in a case of liquidated damages?

• A) For liquidated damages to be lawful, the actual damages must be precisely determined.
• B) Liquidated damages are enforceable even if actual damages are later determined to be different.
• C) A liquidated damages clause is considered a penalty if actual damages are not determinable in advance.
• D) If a liquidated damages clause is found to be a penalty, it continues to be enforceable.

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Definitions:

Nearest Cent

Rounding a monetary amount to the closest one-hundredth of the currency unit, such as a dollar.

Semiannual Compounding

Another term for compounded semi-annually, indicating that interest is added to the principal sum twice per year.

Nearest Cent

Rounding a monetary amount to the closest one-hundredth of a currency unit.

Future Value

The value of an investment or asset at a specific future date, considering factors like interest rates or earnings growth.