Parties may also fix in advance what a breach will cost, before it happens. Those pre-agreed sums are:
ALimited licences
BLegal fictions
CLiquidated damages
DLiteral damages
Answer & Solution
Correct answer: C. Liquidated damages
1. Working out real loss after the event can be hard.
2. Naming the figure in the contract avoids that fight.
3. Such pre-agreed sums are liquidated damages.
_Source: OpenStax Business Law I Essentials 2e, Chapters 7 and 8, Contract Law and Sales Contracts._
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