Liquidated damages are damages that

Question

Quizplus · Accepted Answer

Liquidated damages are pre-agreed upon the amount of compensation for a specific breach of contract. The amount is not intended to punish the breaching party, but rather to provide a specific and predetermined amount of compensation for the non-breaching party. Liquidated damages are intended to provide certainty and predictability in the event of a breach of contract. Therefore, option A is incorrect. Option B is incorrect because liquidated damages are a fixed amount and do not fluctuate with the market conditions.

Liquidated Damages Are Damages That