CLEP Business Law

Category - Miscellaneous

The Uniform Commercial Code (UCC) permits parties to a sales contract to establish in their sales contract the damages that will be paid upon a breach of contract. Such pre-established damages are referred to as:
  1. Contract damages.
  2. Punitive damages.
  3. Nominal damages.
  4. Liquidated damages.
  5. Actual damages.
Explanation
Answer: D. Such pre-established damages are referred to as liquidated damages. Liquidated damages replace actual damages. However, they must have some relationship to the amount of the loss of the non-breaching party.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz