Question
Sheila Seller and Bobby Buyer enter into a contract where Bobby agrees to buy widgets for $0.10/unit at 500 units per shipment.The contract states that
Sheila Seller and Bobby Buyer enter into a contract where Bobby agrees to buy widgets for $0.10/unit at 500 units per shipment.The contract states that there shall be a minimum of 6 shipments between the parties.Bobby's payments are late on the first 3 shipments, and Bobby does not make the payment on the 4thshipment.In the parties' contract is a liquidation clause, which states that if either side is unable to perform his or her duties under the contract, then the other party shall receive damages in the amount of $100,000.Should the court enforce this liquidated damages clause?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started