A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.

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Business

Leyla Coleman

25 October, 19:59

A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.

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Answers (1)

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Lainey Owen · Answer 1

Correct.

Explanation:

A liquidated damage clause is a clause within a contract that refers to a case of default in the execution of contracts where both parties to the contract agree before hand (prior to the execution stage of the contract) what amount will be charged to a defaulting party in the event of not carrying out their responsibilities as agreed in the contract. Most times this is expressed as a percentage of the contract sum.