Arthur and Brian have entered into a contract with an enforceable liquidated damages provision that states that Ben's recovery will be $10,000 in the event of Arthur's breach.Arthur breaches the contract.Ben loses $50,000 in consequential damages as a result.Ben's recovery is limited to $10,000.

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When liquidated damages provisions are enforced,the amount of damages agreed on will be the injured party's exclusive damage remedy.Here,the liquidated damages provision makes it possible for Ben to recover only the $10,000 as stated.

Arthur and Brian Have Entered into a Contract with an Enforceable