General Contractor enters into a contract with a municipality for the construction of a pedestrian bridge. The contract provides that "any departure from the terms of this contract subjects the General Contractor to a $5,000 per day penalty which the General Contractor agrees shall be paid by the general contractor on demand." Choose the best answer

The quoted provision is an enforceable liquidated-damages clause.

The quoted provision is an enforceable arbitration agreement.

The quoted provision is an unenforceable restraint on trade.

The quoted provision is an unenforceable liquidated-damages clause.