Question
Zev enters it a contract with Aerin to buy Aerin's boat for $2,500. Zev tells Aerin he plans to use the boat to charge people
Zev enters it a contract with Aerin to buy Aerin's boat for $2,500. Zev tells Aerin he plans to use the boat to charge people to travel around the harbor to look at the Christmas lights. Zev has done the math and determined he will earn about $1,500 during the Christmas season doing this. The contract says the boat is "seaworthy." There is also a provision that says, "liquidated damages: should Aerin fail to deliver a seaworthy boat, Aerin will pay Zev $2,500." He puts the boat in the harbor for his first night of service and the boat immediately sinks and is lost forever.
Is the liquidated damages provision is enforceable?Explain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The enforceability of a liquidated damages provision depends on whether it is a valid and reasonable ...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 StartedRecommended Textbook for
Business and Administrative Communication
Authors: Kitty o. locker, Donna s. kienzler
10th edition
77830105, 978-0077830106, 978-0073403182
Students also viewed these Law questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App