In a construction contract, there is a $1,000 per day estimate of damages for each day that the contract runs over the completion date. The contractor is 30 days late when the job is completed, resulting in a prospective damage award of $30,000. What is this type of clause, and when will it be enforced?
What will be an ideal response?
This type of clause is known as a liquidated damages clause. Generally, this type of clause will be enforced if, at the time of creating the contract, it was very difficult to estimate actual damages, and the liquidated amount is reasonable. In this case, if the total construction contract involved millions of dollars, the estimate of damages may reasonably amount to a $1,000 per day. If the construction project is a small one, the court may see this amount as too much and not enforce the clause.
You might also like to view...
An emotional process of limited duration lasting from seconds to hours and varying from mild to intense is known as which of the following?
A. emotion state B. emotion trait C. emotion genetics D. gendered emotion
Marco Insurance acquired shares of Penny Systems' common stock on December 28, 2013, for $400,000 and classified them as trading securities. The fair value of these securities on December 31, 2013, was $402,000 . Marco Insurance sold these shares on January 3, 2014, for $405,000. (Refer to the Marco Insurance) The journal entries to record acquisition of trading securities on December 28, 2013
a. Cash..................................................... 400,000 Marketable Securities.....................................400,000 b. Other Comprehensive Income..............400,000 Marketable Securities.....................................400,000 c. Marketable Securities..........................400,000 Other Comprehensive Income....................... 400,000 d. Marketable Securities..........................400,000 Cash................................................................400,000 e. Marketable Securities..........................400,000 Net Income.....................................................400,000
The payroll register of Vtech Enterprises showed total employee earnings of $2,100 for the week ended August 2, 2019. Compute the employer's payroll taxes for the period. The tax rates are: Social security tax, 6.2 percent; Medicare tax, 1.45 percent; FUTA tax, 0.6 percent; SUTA tax, 2.2 percent. All earnings are taxable. Record the employer's payroll taxes for the period on page 4 of a general journal.
What will be an ideal response?
The first phase in the project life span is
A) design. B) conceptualization. C) planning. D) implementation.