Master Mfg., Inc, contracted with Accur Computer Repair Corp to maintain Master's computer system. Master's manufacturing process depends on its computer system operating properly at all times. A liquidated damages clause in the contract provided that Accur pay $1,000 to Master for each day that Accur was late responding to a service request. On January 12, Accur was notified that Master's
computer system had failed. Accur did not respond to Master's service request until January 15 . If Master sues Accur under the liquidated damages provision of the contract, Master will:
a. Win, unless the liquidated damage provision is determined to be a penalty.
b. Win, because under all circumstances liquidated damages provisions are enforceable.
c. Lose, because Accur's breach was not material.
d. Lose, because liquidated damage provisions violate public policy (5/93, Law, #25).
.A
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Fill in the blank with correct word.
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