Multiple choice

Penalties under contract for delay in completion of a contract on schedule are known as

  1. liquidated damages

  2. container liability

  3. construction liability

  4. fidelity guarantee
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A Correct answer
Explanation

Liquidated damage is an estimated amount equal to the extent of injury that may occur, if the contract is breached. These damages are determined when a contract is drawn up and serve as protection for both parties that have entered the contract.

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