When would the amount of liquidated damages agreed to by both parties in a contract be considered unconscionable?
A)If the amount is reasonable.
B)If the amount of losses was easy to estimate while drafting the contract.
C)If the amount were too small compared to the possible losses.
D)If the amount were too big to be considered penal.

Question

Quizplus · Accepted Answer

If the amount were too small,say $1,it might be considered unconscionable and therefore not enforceable.

When Would the Amount of Liquidated Damages Agreed to by Both