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A sum of money to be paid in the event of a breach of contract that is pre-agreed to in a contract is known as:

A Damages
B Liquidated damages
C Estoppel
D Specific performance

User Joe Waller
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Final answer:

Liquidated damages refer to a predetermined sum agreed upon in a contract as compensation for a breach, whereas damages are assessed after the breach. Estoppel prevents inconsistency in positions if it harms the other party, and specific performance orders fulfilling contractual obligations.

Step-by-step explanation:

A sum of money to be paid in the event of a breach of contract that is pre-agreed to in the contract is known as B Liquidated damages.

Liquidated damages are a predetermined sum agreed upon by both parties at the time of the contract signing, which represents a fair estimate of damages that would occur in case one party breaches the contract. This is different from damages which are not predetermined and are assessed and awarded by a court after the breach occurs. Estoppel is a principle that prevents a party from arguing something contrary to a position they previously took if the other party relied on the original position to their detriment, and specific performance is a legal remedy where the court orders the breaching party to perform their part of the contract, typically used when monetary compensation is inadequate.

User Rosado
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