Carla Wolfe orders some inventory from Supplex Co Carla calculates that if Supplex is late in delivery, she will lose about $100 a day in profits. They agree to specify in the purchase order that Supplex will pay Carla $100 a day if late

What is this clause called?

A) Penalty clause
B) Liquidated damages clause
C) Pre-estimated clause
D) Guarantee clause
E) Defeasance clause

B

Business

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