Damages that will be paid upon a breach of contract, but that are established in advance are known as ________.
A)capture
B)replevy
C)installment damages
D)liquidated damages

Question

Quizplus · Accepted Answer

Liquidated damages are damages that are agreed upon in advance by the parties to a contract, as a reasonable amount of compensation in the event of a breach. This can avoid the need for costly litigation to determine the amount of damages, and can provide greater certainty and clarity in commercial transactions.

Damages That Will Be Paid Upon a Breach of Contract