National-PC-III Property Provisions & Contract Law hard
A property policy endorsement states: 'If the insured fails to install a required burglar alarm within 90 days, the insured shall pay $10,000 to the insurer as agreed damages, regardless of any loss.' This provision is most likely: A Unenforceable as a penalty under Restatement (Second) Contracts §356, because the fixed sum bears no relation to anticipated harm from non-installation and is triggered regardless of whether any loss occurs B Enforceable as liquidated damages, because the parties expressly characterized the $10,000 figure as 'agreed damages,' and that contractual label is wholly dispositive of the provision's validity under §356 C Enforceable, because requirements compelling installation of burglar alarms are strongly favored on public-policy grounds and any stipulated sum supporting such loss-prevention measures will be upheld by the courts D Enforceable, but only if the insured separately signs a standalone written waiver acknowledging the $10,000 charge, after which the agreed-damages provision becomes fully binding upon any later non-installation
