Question

Edna Boyle contracts with The Melonville Times to advertise her garage sale to be held this Saturday. The ad is to run in the Friday and Saturday morning edition. If the ad does not run on time, The Melonville Times agrees to pay Edna $50.00. This liquidated damages clause is most likely enforceable. True False

Answer 1

Answer:

True

Explanation:

As per the contract details, Melonville Times will telecast and run an advertisement on Friday and in the morning of Saturday, as later during Saturday the sales has to be done.

In case of any failure from Melonvile Times, it is liable to pay $50. Now, by the clause and word enforceable means actionable in real terms.

Since there is a formal written contract between the parties and the purpose of such advertisement and the value in case of any failure is defined, the liquidated damages provided are enforceable.

Note: It is assumed as the organisations are legal and professional all the conditions to make the contract legally valid is true.

Therefore, above stated statement is true.