Big Bad Wolf MasonryCo. agreed to build a brick home for Johnny Little Pig, the ThirdbyNovember 1.Big Bad Wolf and Johnny Pig could not predict Pig's losses if Big Bad Wolf failed to complete the house on time.They estimated thatJohnny Pig would lose $150 in storage and rental fees per day if the building was not completed on time.The contract contained a liquidated damage clause.The clauserequiredBig Bad Wolf to pay liquidated damages of $150 per day if the work was completed late.Big Bad Wolffinished the hometwelve days late.Johnny Pigactually lost $1,000because ofthe breach.

Is the liquidated damage amount stated in the contract betweenBig Bad Wolf Masonry and Johnny Piga valid or invalid liquidated damage clause and why? How much in damages canJohnny Pigrecover fromBig Bad Wolf Masonry Co.?