Enforceability Of Liquidated Damages Clauses
Under what circumstances is a liquidated damages clause enforceable?
AWhen the potential loss to the nonbreaching party is uncertain or difficult to calculate.
BWhen a court approves the damages amount prior to the execution of the contract.
CWhen the parties mutually agree to avoid calculating actual damages.
DWhen the nonbreaching party intends to punish the breaching party.
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