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Ok so I just got out of my contracts final and the last hypo threw me for a loop. If you haven't done your final yet and want some practice, check it out:


A wants to open a seafood restaurant. She rents the location and contracts B to repair the place, install furniture, etc. She tells B that she has already agreed to host three gala dinners for three trade organizations and thus B should finish his work by September 1. Altogether the dinners will earn A 100,000 minus 20,000 for the extra staff/ food that she will have to employ/ buy. The two agree on a liquidated damages clause wherein for every day that B is late on finishing the work, he liable to A for the average gross receipts per day based on the gross receipts of A's first month in business. B finishes the work one month late. A makes 50,000 in her first month. What damages can A recover from B, if any?

Were the three dinners supposed to happen in September?

You would be better off just moving on to your other finals. Posting this and looking at the answers people give you is only going to increase your anxiety. It's over, move on.

The way my professor taught us would be that A can't recover from B since that kind of agreement would be an unenforceable penalty clause. It would have possibly been enforceable if it had been phrased as a bonus for finishing early, though (we did a hypo in class that was basically the same as this and this was my professors answer).

OutCold wrote:You would be better off just moving on to your other finals. Posting this and looking at the answers people give you is only going to increase your anxiety. It's over, move on.

Also this.

I don't understand why people do this.