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A contract clause indicating damages to be recovered in the event of under-performance, with the proposed damages being a genuine pre-estimate of loss, is called a:
Suggested Answer: A
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In English law, implied terms exist, even if you can't see them in the contract documents. They commonly derive from statute. An example is the Sale of Goods Act.
36 comments · newest first
ME
Meaghan
11 months ago
I thought unliquidated damages were more common.
RO
Rosamond
11 months ago
Just a heads up, punitive damages are different!
JO
Johnna
12 months ago
Wait, isn't it a Penalty clause? I'm not so sure.
BL
Blondell
12 months ago
Totally agree, B is the right answer.
CA
Carrol
1 year ago
It's definitely a Liquidated damages clause!
DE
Desire
1 year ago
I’m pretty confident it’s liquidated damages. We discussed how it’s meant to be a fair estimate of loss, right?
DE
Dexter
1 year ago
I’m torn between liquidated damages and penalty clause. I feel like one is more about genuine pre-estimates, but I can't recall which!
SI
Silvana
1 year ago
I remember practicing a question like this, and I think the answer was definitely not punitive damages.
SH
Shizue
1 year ago
I think this might be a liquidated damages clause, but I'm not entirely sure. It sounds familiar from our last class.
MA
Margarita
1 year ago
I'm a little confused by the wording of this question. Is there a difference between a "liquidated damages clause" and an "unliquidated damages clause"? I'll have to review my notes to make sure I understand the distinction.
CR
Cruz
1 year ago
Okay, I think I've got this. The key is that a liquidated damages clause is a genuine pre-estimate of the loss, not a penalty. So that rules out the "penalty clause" option. I'm going with B, liquidated damages clause.
LA
Laurel
1 year ago
I'm pretty confident this is a liquidated damages clause. The question describes it as a pre-estimate of loss, which is the key characteristic of a liquidated damages clause.
VA
Valentine
1 year ago
Hmm, I'm a bit unsure here. I know liquidated damages are different from punitive damages, but I can't quite remember the exact definition. I'll have to think this through carefully.
RI
Rikki
1 year ago
This looks like a good opportunity to implement keywords with higher level of granularity. That way, we can reuse the common setup and teardown steps across all test cases.
VI
Viva
1 year ago
I recall the one about events after the balance sheet date being essential for disclosures, so I'm leaning towards that one not being included.
CA
Candra
1 year ago
Hmm, this seems straightforward. I think the answer is C - Extend desktop to this display, since that would allow the system tray to be moved to the secondary monitor while keeping the panoramic display.
AD
Adelle
2 years ago
Liquidated damages it is. Better to have a clear agreement on the damages upfront than leave it up to the courts later on.
FL
Florinda
1 year ago
D) Unliquidated damages clause
MA
Maryanne
1 year ago
C) Penalty clause
LA
Laurel
1 year ago
B) Liquidated damages clause
KI
Kiley
1 year ago
A) Punitive damages clause
BO
Bobbie
1 year ago
A: Exactly, it helps avoid any disputes in the future.
KE
Kenneth
1 year ago
B: I agree, it provides clarity and certainty for both parties.
LI
Lindsey
1 year ago
A: Liquidated damages clause is definitely the way to go.
KR
Kristofer
2 years ago
Haha, I almost went with the 'Penalty clause' option. Sounds like something out of a bad movie contract!
NA
Naomi
2 years ago
Yeah, I agree. Liquidated damages is the correct answer here. It's a way to avoid the uncertainty of unliquidated damages.
LO
Lon
2 years ago
Yes, you're right. It helps to provide certainty in case of under-performance.
CA
Carri
2 years ago
I think it's a liquidated damages clause.
CA
Cathrine
2 years ago
Hmm, I think the answer is B. Liquidated damages clause. That's the one where the damages are agreed upon beforehand, right?
EL
Eleonore
1 year ago
That's right, a liquidated damages clause specifies the amount to be paid in case of under-performance.
TE
Tegan
1 year ago
Liquidated damages clause is when the parties agree on the amount of damages in advance.
HE
Herminia
2 years ago
I agree, the damages are predetermined in a liquidated damages clause.
DA
Dahlia
2 years ago
Yes, you're correct. It is indeed B) Liquidated damages clause.
RE
Reiko
2 years ago
I'm not sure, but I think C) Penalty clause is also a possibility. It's important to differentiate between liquidated damages and penalties.
LA
Lajuana
2 years ago
I agree with Nidia, because liquidated damages are meant to be a genuine pre-estimate of loss.
NI
Nidia
2 years ago
I think the answer is B) Liquidated damages clause.