When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?


An agreement setting forth liquidated damages will be enforced if it is reasonable in light of the anticipated or actual harm caused by the breach, the difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an adequate remedy. A term fixing unreasonably large liquidated damages will be considered void as a penalty.

Business

You might also like to view...

Compare and contrast job-order and process costing systems

Business

Islamic law, the legal system influenced by the religion of Islam, is referred to as shari'a

a. True b. False Indicate whether the statement is true or false

Business

The state government of the state of Bompahiam rewards writers who write freelance articles about the state tourism. Travel freelancers mostly write about Bompahiam's tourist-friendly people who speak multiple languages, its coral reefs, its efficient and well-connected public transportation system, and its four annual festivals. Which of the following marketing strategies does this scenario best illustrate?

A. People marketing B. Place marketing C. Event marketing D. Idea marketing

Business

When data can be transmitted in both directions on a telecommunications line, but not simultaneously, the transmission type is referred to as:

A) switched-line. B) simplex. C) half-duplex. D) full-duplex.

Business