Question
Painter contracts with Landlord to repaint 100 apartments in her complex. The contract is for $100,000 and the work is to be completed within 30
Painter contracts with Landlord to repaint 100 apartments in her complex. The contract is for $100,000 and the work is to be completed within 30 days. The contract includes the following clause:
Delay - Liquidated Damages. Painter and Landlord agree that time is of the essence in performance of this contract and that in the event the work is not completed within 30 days, Landlord will suffer significant losses that are not readily ascertainable. Accordingly, the parties agree that the following liquidated damages shall be payable to Landlord in the event of delay: For delay of 1-3 days, $10,000; For delay of 4-6 days, $25,000; and, For any delay of 7 days or more, $99,000.
Painter begins the work promptly and finishes 95 of the apartments within 30 days. But, due to a jobsite injury, Painter is shut down on Day 30 and unable to work on the complex for 7 days. The next day, Painter completes the work in the remaining 5 apartments, completing the overall project 8 days late. When Painter presents his invoice for $100,000, Landlord refuses to pay anything more than $1,000, citing the liquidated damages clause.
If Painter sues landlord for payment, the court will most likely:
Group of answer choices
a) Enforce the liquidated damages clause limiting Painter's payment to $1,000 because the parties freely negotiated this term
b) Reject the liquidated damages clause and order Landlord to pay Painter the full $100,000 contract price less any actual damages Landlord can prove it incurred due to the delay
c) Reject the liquidated damages clause and order Landlord to pay Painter the full $100,000 contract price because the delay was beyond Painter's control
d) None of the above are likely to be ordered
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