Question

Hadley Homes, a building contractor and Wesley have a contract, which calls for Hadley to builda 4-bedroom house with the completion of it by June 15. If the house is not completed by that date,the contract calls for Hadley to pay $100 per day in damages. The $100 per day is_______.
(A) punitive damages.(B) nominal damages.(C) liquidated damages.(D) an illegal penalty.

Answer 1

Answer:

Liquidated damages

Explanation:

Liquidated damages

Liquidated damages are the damage amount which need to pay by one party if there is any breach of contract between the parties. it is decided prior at the time of making a contract and needs to be paid if there is any damage to the signed contract.

breach o contract can be taken on the basis of completion of the project in the given time. if the project not done on a given time then liquidated damage needs to be paid to another party.