Home delivery corporation and interstate transport inc. sign an agrement that provides for the payment of $1000 by whichever party committs material breach of the contract that creates damages difficult to estimate byt approximately $1000 this isa. liquidated damages clause. b. mitigation of damages clause. c. no-damages clause. d. penalty clause.

A. Liquidated Damages Clause

Explanation:

Liquidated damages clause is a provision in the case of a breach of contract in certain legal contracts where the party that defaults or cause intangible or hard to define losses to the other is obligated to pay a pre-determined estimate or amount to the affected party.

Liquidated damages are damages that occur as a result of specific breach in of contract, for instance, late execution of project that leads to a loss for the other party can be called a liquidated damage. As such the pre-determined amount or estimate for such damages must be paid.

Home Delivery Corporation and Interstate transport inc. have designated $1000 as the liquidated damages clause for a case of material breach of the contract signed by either party.

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