Jennifer has recently signed a contract with a renovation contractor called Beautiful Homes ("BH"), to renovate her existing apartment for a total sum of $30,000, which is payable on completion. As Jennifer wanted to make sure that BH would carry out the renovation works in a timely manner, she included a clause in the contract that states as follows:

"Clause 23: The renovation works must be completed within two years from the date of this contract. If Beautiful Homes ("BH") fails to do so, BH shall pay Jennifer a penalty lump sum of $10,000."

(a) Analyse Clause 23 with reference to the common law guidelines relating to liquidated damages, and conclude whether Clause 23 is likely to be enforceable by Jennifer in the event that BH fails to complete the renovation works on time.

(19 marks)

(b) Assume that Jennifer has not yet signed the contract, and has come to you for advice on Clause 23. Give two (2) suggestions to Jennifer on changes that you would propose to Clause 23 to make it more likely to be enforceable, and provide brief reasons for your suggestions. (Your suggestions should be based on contract law principles.)

(6 marks)