Zev enters it a contract with Aerin to buy Aerin's boat for $2,500. Zev tells Aerin he plans to use the boat to charge people to travel around the harbor to look at the Christmas lights. Zev has done the math and determined he will earn about $1,500 during the Christmas season doing this. The contract says the boat is "seaworthy." There is also a provision that says, "liquidated damages: should Aerin fail to deliver a seaworthy boat, Aerin will pay Zev $2,500." He puts the boat in the harbor for his first night of service and the boat immediately sinks and is lost forever.

Is the liquidated damages provision is enforceable?Explain

Answer rating: 100% (QA)

The enforceability of a liquidated damages provision depends on whether it is a valid and reasonable ... View the full answer