Question: The contract between Elroy and AA includes a non compete clause wherein Elroy agrees not to manufacture winter coats or sell the fabric to another

The contract between Elroy and AA includes a non compete clause wherein Elroy agrees not to manufacture winter coats or sell the fabric to another manufacturer during the contract period. In the event of a breach, Elroy agrees to pay $10,000 per day for noncompliance.

a) This is a liquidated damages clause which by definition is unenforceable

b) This is a liquidated damages clause which is enforceable as long as it is reasonable.

c) AA's only recourse in the event of a breach is to sue Elroy for compensatory damages.

d) AA's only recourse in the event of a breach is to sue for punitive damages

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