Question

SFX Paintball Games, Inc., and Truck & Trailer Delivery Corporation sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is

Answer 1

Answer:

A liquidated damages clause.

Explanation:

The liquidated damage clause is the clause in which the party who has breach the contract or who has delay the completion of the contract has to pay the damages for the liquidation of the contract

here in the given situation, since the company has an agreement with the other party and if anyone party breach the contract then the price they paid would be $1,000 approx

Therefore this represents the liquidated damages clause