Which of the following statements in relation to liquidated damages is correct?
A、Liquidated damage clauses are void and unenforceable in contract law
B、Liquidated damage clauses must be highlighted in the contract
C、The purpose of liquidated damage clauses is to deter potential breaches of contract
D、Liquidated damages are only payable where a condition of a contract is breached
A、Liquidated damage clauses are void and unenforceable in contract law
B、Liquidated damage clauses must be highlighted in the contract
C、The purpose of liquidated damage clauses is to deter potential breaches of contract
D、Liquidated damages are only payable where a condition of a contract is breached
【参考答案及解析】
Liquidated damage clauses are onerous terms that must be highlighted in the contract. They are valid and enforceable. Their purpose is to compensate the innocent party for losses incurred, not to deter breaches of contract. They are payable where conditions, warranties and innominate terms are breached.
Liquidated damage clauses are onerous terms that must be highlighted in the contract. They are valid and enforceable. Their purpose is to compensate the innocent party for losses incurred, not to deter breaches of contract. They are payable where conditions, warranties and innominate terms are breached.