Liquidated damages will be enforced based upon the free-will concept of contracts, even if the liquidated damages amount is unreasonable.

Question

Madison Lockwood · Accepted Answer

Final Answer : False, Explanation :  Liquidated damages must be a reasonable estimate of the anticipated or actual harm caused by the breach of contract; if the amount is deemed unreasonable or punitive, it may not be enforced by a court.

Liquidated damages will be enforced based upon the free-will concept of contracts, even if the liquidated damages amount is unreasonable.

Definitions

Learning Objectives

Learning Objectives

Related questions