📜 BAR Exam Prep

Liquidated damages clauses are enforceable if:

A They are any amount chosen by the parties
B The amount is reasonable in relation to anticipated or actual loss and damages were difficult to estimate
C They exceed actual damages
D Both parties are merchants

✓ Correct Answer: Option B

Liquidated damages must be a reasonable estimate of anticipated loss at time of contracting, and actual damages must be difficult to determine. Otherwise, it is an unenforceable penalty.

Practice BAR Exam Prep Quizzes → Browse All Questions Study Flashcards

Related BAR Exam Prep Questions

Under strict liability, a defendant is liable:

Which of the following is NOT a hearsay exception?

The Necessary and Proper Clause grants Congress power to:

Standing to sue in federal court requires:

Collateral estoppel (issue preclusion) prevents:

Strict scrutiny applies when the government classifies based on: