Which One of the Following Statements Accurately Describes the Effect

question 134

Multiple Choice

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

• A)The plaintiff will likely be awarded a judgment for all damages that "naturally and directly flow" from the breach.
• B)The court will likely award the amount set out in the clause if it considers that to be a genuine estimate by the parties of the likely consequences of the breach.
• C)This clause conclusively determines the amount of damages that the court can award.
• D)Liquidated damages only apply to losses caused by excess water,such as floods or tidal waves.
• E)This clause requires the injured party to take all reasonable steps to mitigate (lessen)his or her losses.