Question

Liquidated damages provisions are generally unenforceable if they are more like a penalty for breaching the contract, rather than a reasonable measure of the loss that would result in the event of breach.​

A. True
B. False

Answer 1

Answer:B, False

Explanation:

Liquidated damages provisions are the actual amount of money mutually agreed upon by both parties during the period the contract is initiated, and it states the damages that can be recouped incase a party breaches the contract.

Liquidated damages is calculated thus: contract cost multiply by total extended cost / total project cost multiply by contract duration.