While reviewing a transaction in Apache County, a broker says a liquidated-damages clause always means the nonbreaching party can recover any larger actual loss later as well. What should the parties assume under current Arizona rules?
Correct Answer
C) a true liquidated-damages provision is meant to set the agreed remedy within the clause's scope rather than guarantee unlimited extra recovery
Under Arizona contract law; current AAR contract concepts, a true liquidated-damages provision is meant to set the agreed remedy within the clause's scope rather than guarantee unlimited extra recovery.
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