What if a liquidated damage clause is punitive in nature?
A)The UCC allows punitive liquidated damages as long as the parties negotiated in good faith to include a liquidated damages clause.
B)The UCC allows punitive liquidated damages if there were lost profits.
C)The UCC allows punitive liquidated damage clauses but common law does not.
D)The UCC allows punitive liquidated damages only in contracts for sale,but not lease contracts.
E)Courts will not enforce the liquidated damage clause if it is punitive in nature.

Question

Quizplus · Accepted Answer

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

What If a Liquidated Damage Clause Is Punitive in Nature