Question

Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. If the amount fixed for the damages is unreasonably high, the court will consider it a ________________and will not enforce it.

Answer 1

Liquidated

Explanation:

Liquidated is a converting process in which assets have been changed in money and money is equivalent to the selling product in open marketing. It is also used in bankruptcy. Assets are part of the finance and it has some value. In bankruptcy, the assets have been changed in the cash (liquidate). The liquidate occurs when an investor closes his/ her assets.

• Liquidate simply we can say that the selling of assets in cash.

• Investors use liquidate for a variety of reason that means need of the payment,

• It is the forced process to change the assets into liquidating