Liquidated damages clause in a contract


Question: A liquidated damages clause in a contract for any sale of goods will not be enforced when

1. actual damages would be easy to prove in the event of a breach

2. the amount specified is so large as to be a penalty

3. the amount specified is so low as to be uncomscionable

4. all of the above

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Business Law and Ethics: Liquidated damages clause in a contract
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