In which of the following cases will a court refuse to enforce the provision of liquidated damages on a party?
A) When the actual damages are difficult to be proved
B) When the liquidated damages were established prior to the breach of contract
C) When the amount of liquidated damages fixed by the contract is unreasonable
D) When the parties refuse to pay the liquidated damages established in the contract

Question

Quizplus · Accepted Answer

Courts refuse to enforce liquidated damages if the amount is deemed unreasonable or punitive, as it must reflect a genuine pre-estimate of loss.

In Which of the Following Cases Will a Court Refuse