Which of the following is correct?

Which of the following is correct?

(i) A liquidated damages clause will be void if it amounts to a penalty clause.

(ii) A liquidated damages clause will apply where it is a genuine attempt to pre-estimate the loss caused by a breach of contract.

(iii) A liquidated damages clause is void if it is for an amount in excess of the actual loss caused by the breach of contract.
A . (i) and (ii) only
B . (ii) only
C . (i), (ii) and (iii)
D . (iii) only

View Answer

Answer: A