Drew contracts to sell a residential duplex to Evan. The contract pro­vides that if Drew does not close the deal by September 15, he must pay Evan one-half of the contract price. This provision is not enforceable be­cause it is
A. a liquidated damages clause.
B. a mitigation clause.
C. a nominal damages clause.
D. a penalty clause.
Answer:D
Drew contracts to sell a residential duplex to Evan. The contract pro­vides that if Drew does not close the deal by September 15, he must pay Evan one-half of the contract price. This provision is not enforceable be­cause it is
A. a liquidated damages clause. B. a mitigation clause. C. a nominal damages clause. D. a penalty clause.