A provision stipulating the amount of money damages to be paid in the event of default or breach of contract is known as a __________ damages clause.
A) nominal
B) contract
C) liquidated
D) breach

Question

Quizplus · Accepted Answer

A provision stipulating a specific amount of money damages to be paid in the event of default or breach of contract is known as a liquidated damages clause. This clause is often included in contracts to provide parties with a predetermined amount of damages in the event of a breach, rather than requiring the parties to go through the time and expense of proving their damages in court.

A Provision Stipulating the Amount of Money Damages to Be