Damages that will be paid on a breach of contract that are established in advance are known as ________.
A) contemptuous damages
B) aggravated damages
C) installment damages
D) liquidated damages

Question

Quizplus · Accepted Answer

Damages that are established in advance and will be paid on a breach of contract are known as liquidated damages. This type of damages is usually specified in the contract itself and is meant to provide certainty and predictability on the amount of damages that will be paid in case of a breach. This is different from unliquidated damages, which are determined by a court based on the actual losses suffered by the non-breaching party.

Damages That Will Be Paid on a Breach of Contract