A Liquidated Damage Provision Will Be Enforced When

question 2

Multiple Choice

A liquidated damage provision will be enforced when:

• A) a technical breach of contract has occurred without causing any actual loss.
• B) the amount specified is reasonable and actual damages are difficult to determine.
• C) the nature of the contract is such that damages are easy to determine.
• D) the amount agreed on is not the injured party's exclusive remedy.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specific period.

Demand

The inclination and capability of buyers to acquire products and services at specified prices.

Increase

An upward movement in quantity, size, number, value, or intensity of a particular variable.

Market Demand

The total quantity of a product or service that all consumers in a market are willing and able to buy at various prices, given a period of time.