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.

Question

Quizplus · Accepted Answer

The parties to a contract may provide in advance that a specific sum shall be recoverable if the contract is breached. Such provisions are called liquidated damage provisions. If the amount specified is reasonable and if the nature of the contract is such that actual damages would be difficult to determine, liquidated damage provisions are enforced.

A Liquidated Damage Provision Will Be Enforced When