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In April, Carlin, a general contractor, contracted with a town to renovate the town square. The town council wanted the project done early and the

In April, Carlin, a general contractor, contracted with a town to renovate the town square. The town council wanted the project done early and the parties placed a clause in the contract that for each day the project extended beyond 90 working days, Carlin would forfeit $88 of the contract price. In July, Carlin took a two-week vacation and stopped work during that period. The project was completed in August, 120 working days after it was begun. What type of damages may the town recover from Carlin?

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Punitive damages because taking a vacation in the middle of the project was irresponsible.

Liquidated damages because of the clause in the contract.

No damages because Carlin completed performance.

Compensatory damages because of the delay in completing the project.

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