Which of the below is a clause triggered by breach (e.g. concerns a secondary obligation) and thus gives rise to the question of whether it was a penalty or liquidated clause?
A) B can park at a car park for 2 hours for free; however, if he stays for longer than two hours, he must pay a parking charge of £85.
B) B promises that if he resumes his career as professional footballer, he will pay £500 to his insurers.
C) B promises, that if C catches the flu after using his product, he will pay her £100.
D) B promises that the price of the contract will be adjusted in the event of his becoming a defaulting shareholder.
Correct Answer:
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