QUESTION IMAGE
Question
which type of damages would occur if the parties specify in advance the amount of losses or a formula in assessing the losses against the breaching party? multiple choice consequential punitive liquidated nominal statutory
Brief Explanations
To solve this, we analyze each option:
- Consequential damages are indirect losses from a breach, not pre - specified.
- Punitive damages are for punishment, not pre - specified amounts.
- Liquidated damages are defined as damages where parties agree in advance on the amount or a formula to calculate losses for a breach. This matches the description in the question.
- Nominal damages are a small amount to recognize a breach, not pre - specified in the way described.
- Statutory damages are set by law, not by the parties in advance.
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C. Liquidated