A contract clause indicating damages to be recovered in the event of under-performance, with the proposed damages being a genuine pre-estimate of loss, is called a:

A contract clause indicating damages to be recovered in the event of under-performance, with the proposed damages being a genuine pre-estimate of loss, is called a:
A . Punitive damages clause
B . Liquidated damages clause
C . Penalty clause
D . Unliquidated damages clause

View Answer

Answer: B

Explanation:

Liquidated damages clause.

The QUESTION is pretty much a definition of a liquidated damages clause.