21.5 Liquidated damages This clause aims to avoid unde...
单项选择题21.5 Liquidated damages
This clause aims to avoid under compensation by stating the amount of money which shall be payable in the (16) of a breach of contract. Such a clause enables those involved to know in advance the extent of their potential liability and to plan _ . In practice, though, the courts have a jurisdiction to control the contents of such clauses.
The rules which the courts have established are the following. If the clause represents a genuine pre-estimate of the loss which is likely to be because of the breach, then it is a ‘liquidated damages clause’ and is enforceable. The sum in the clause is the sum recoverable, even though that sum may be greater or smaller than the actual loss. But if the sum stated in the clause is not a genuine pre-estimate of loss, it is a ‘penalty clause’ and is unenforceable.
A、
fact
B、event
C、incident
D、result
