Hadley Homes,a building contractor and Wesley have a contract,which calls for Hadley to build a 4-bedroom house with the completion of it by June 15.If the house is not completed by that date,the contract calls for Hadley to pay $100 per day in damages.The $100 per day is:

Question

Quizplus · Accepted Answer

The $100 per day is a pre-determined amount agreed upon by both parties as a reasonable estimate of damages that the owner would incur if the project is delayed beyond the specified completion date. This type of damages is referred to as liquidated damages and is enforceable as long as it is not deemed to be an illegal penalty.

Hadley Homes,a Building Contractor and Wesley Have a Contract,which Calls