Which statement is true regarding a liquidated damages clause?
A)A provision for liquidated damages is voidable because of public policy.
B)A provision for liquidated damages will be enforced regardless of whether it is punitive in nature.
C)A provision for liquidated damages is illegal.
D)A provision for liquidated damages is enforceable so long as it is not punitive in nature.
E)A provision for liquidated damages is void because of public policy.

Question

Quizplus · Accepted Answer

A)Generally speaking,a court will enforce a liquidated damage clause as long as it
is not so unreasonable as to be punitive in nature.
B)Generally speaking,a court will enforce a liquidated damage clause as long as it is not so unreasonable as to be punitive in nature.
C)Generally speaking,a court will enforce a liquidated damage clause as long as it is not so unreasonable as to be punitive in nature.
D)Generally speaking,a court will enforce a liquidated damage clause as long as it is not so unreasonable as to be punitive in nature.
E)Generally speaking,a court will enforce a liquidated damage clause as long as it is not so unreasonable as to be punitive in nature.

Which Statement Is True Regarding a Liquidated Damages Clause