Asked by
Terrance Freeman
on Nov 30, 2024
Verified
A contractor and Southampton, Inc. have a contract, which calls for the contractor to build a building with the completion by June 15. If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages. The $100 per day is:
A) punitive damages.
B) nominal damages.
C) liquidated damages.
D) an illegal penalty.
Liquidated Damages
A contractual provision that determines in advance the amount of damages to be paid if a party breaches the agreement.
Punitive Damages
Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious conduct.
Illegal Penalty
A punishment or consequence for an action that is not legally authorized or that exceeds the bounds set by legal statutes.
- Differentiate between various forms of damages such as compensatory, punitive, liquidated, and nominal, and understand their relevance in cases of contract violations.
Verified Answer
OH
Learning Objectives
- Differentiate between various forms of damages such as compensatory, punitive, liquidated, and nominal, and understand their relevance in cases of contract violations.