Lili owns a jewelry store on Melrose Avenue. In order to display her jewelry app

Question

Lili owns a jewelry store on Melrose Avenue. In order to display her jewelry appropriately, she hires Eric the electrician to install new lighting in her store. While the work is being done, the store will be closed. Lili explains to Eric that she needs the work to be done before the weekend, when she makes the most sales. Lili and Eric agree to include in the contract a liquidated damages provision, which states that, if Eric does not complete the work before the weekend, Lili will be able to recover a specified sum for the loss of sales over the weekend. In order for the liquidated damages provision to be enforceable, it must be proven:

That the stated amount must be exactly equal to the actual damages suffered.

That the stated amount must be reasonable in relation to the probable loss or injury.

That the actual damages would be difficult to determine.

That Eric is not a licensed electrician. b and c.

Explanation / Answer

Answer:- Option d) b and c

In order for the liquidated damages provision to be enforceable, it must be proven that the stated amount must be reasonable in relation to the probable loss or injury as well as that the actual damages would be difficult to determine.

Conclusion:- The answer of the question is the last option mentioned in the question i.e., both b and c.

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