If Wallace and Bruce designated in their contract an amount to be paid in the event of a breach and the amount is found to be so high it is considered a penalty, the injured party will be left without a remedy.

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Guiming Liang · Accepted Answer

Final Answer : False, Explanation :  If the designated amount is considered a penalty, courts typically will not enforce the penalty but can still award damages based on the actual harm caused by the breach.

If Wallace and Bruce designated in their contract an amount to be paid in the event of a breach and the amount is found to be so high it is considered a penalty, the injured party will be left without a remedy.

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