In the absence of a liquidated damages clause and a proof of greater damages, the seller's damages are computed as:
A) 25% of the purchase price or $500, whichever is less.
B) 25% of the purchase price or $500, whichever is greater.
C) 20% of the purchase price or $500, whichever is greater.
D) 20% of the purchase price or $500, whichever is less.

Question

Quizplus · Accepted Answer

In the absence of a liquidated damages clause and a proof of greater damages, the seller's damages are computed as 20% of the purchase price or $500, whichever is less. Therefore, option D is correct.

In the Absence of a Liquidated Damages Clause and a Proof