Question
Can the parties to a contract pre-estimate the potential damages? Which of the following is correct? a) The parties are not permitted to pre-estimate the
Can the parties to a contract pre-estimate the potential damages? Which of the following is correct?
a) The parties are not permitted to pre-estimate the losses that might occur from a breach, since the degree of loss can never be estimated until it actually occurs
b) The parties can determine the penalties that must be paid if there is a breach, these monetary amounts can then be enforced in a court for a breach of the agreement
c) Penalties and liquidated damages refers to the amounts of money that must be paid by a party defaulting under a contract, if the breach is particularly severe then the court may impose penalties on top of liquidated damages
d) The parties in a contract may make pre-estimate of damages for particular breaches, this is a 'liquidated damages clause'
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