Contractor enters into a construction contract with a Subcontractor for the Subcontractor to provide sufficient concrete on a construction job site to complete all concrete work according to the contract specifications. The contract provides that "any failure to comply with the strict terms of this contract subjects the Subcontractor to a $10,000 penalty, which the Subcontractor agrees it shall pay on demand."

Group of answer choices

The quoted provision is an enforceable liquidated damages clause.

The quoted provision is an enforceable arbitration agreement.

The quoted provision is an unenforceable liquidated damages clause.

The quoted provision is a restraint on trade.