Home Delivery Corporation and Interstate Transport, Inc., sign an agree­ment that provides for the payment of “$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti­mate but approximately $1,000.” This is
A. a liquidated damages clause.
B. a mitigation of damages clause.
C. a nominal damages clause.
D. a penalty clause.
Answer:A
Home Delivery Corporation and Interstate Transport, Inc., sign an agree­ment that provides for the payment of “$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti­mate but approximately $1,000.” This is
A. a liquidated damages clause. B. a mitigation of damages clause. C. a nominal damages clause. D. a penalty clause.