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never [62]
3 years ago
9

A multi-million dollar contract between a manufacturer and a parts supplier provides for damages of $300 per day for late delive

ry is void as a penalty contract.
True / False.
Social Studies
1 answer:
chubhunter [2.5K]3 years ago
3 0

Answer:

False

Explanation:

The contact of any multi million dollar between twp parties is a condition precedent. Contract are governed by certain rules and regulation and by the mutual understanding and acceptance of rules. They agree upon the conditions and the consequences while making the contract. The penalty or damages are also agreed upon due to breech or delay in the proposed assignment. Thus it depends upon the contract agreement and parties to fix a penalty price for late delivery or breached and is not fixed to $300 per day. It damages value depends upon the total contract value.

Hence the answer is FALSE.

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