Brown's Construction Co agreed to renovate a lecture hall at Moosehead University.The contract required the work to be done between July 1 and September 1 so that classes would not be disrupted.The contract also stated that Brown's would be required to pay the university $10 000 per week for each week that the work ran over schedule.That part of the contract was intended to allow Moosehead to rent other premises for the purpose of holding class off-campus in the event of a delay as a reasonable pre-estimate of liquidated damages.In fact,the project was finished six weeks late.Because of an unexpected downturn in the economy,however,the university only had to pay a total of $20 000 to hold classes off-campus during the delay.Brown's Construction nevertheless may be required to pay $60 000.

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The contract stated that Brown's Construction would be required to pay $10 000 per week for each week that the work ran over schedule as a reasonable pre-estimate of liquidated damages. As the project was finished six weeks late, Brown's Construction may be required to pay $60 000, even though the university only had to pay $20 000 to hold classes off-campus during the delay due to the unexpected downturn in the economy.

Brown's Construction Co Agreed to Renovate a Lecture Hall at Moosehead