Def Jam Productions contracts with Mainstreet Carrollton (the owner of a nearby parking lot) to provide overflow parking for Def Jam's concert Friday night at the Amp in Carrollton. Their contract contains a provision that states, "In the event the lot is not vacated by Saturday morning in time for the breakfast crowd to arrive at the local restaurants, Def Jam will pay damages in the amount of $1,000." It is difficult to calculate the amount of damages for loss of parking in the lot because it varies from day-to-day, but it ranges from approximately $500 on a slow weekday to $2,000 on the busier weekend days. The damages provision in this contract is O 1) a penalty clause. 2) a liquidated damages clause. 3) an example of consequential damages. 4) a confiscation of property.

Def Jam Productions contracts with Mainstreet Carrollton (the owner of a nearby parking lot) to provide overflow parking for Def Jam's concert Friday night at the Amp in Carrollton. Their contract contains a provision that states, "In the event the lot is not vacated by Saturday morning in time for the breakfast crowd to arrive at the local restaurants, Def Jam will pay damages in the amount of $1,000." It is difficult to calculate the amount of damages for loss of parking in the lot because it varies from day-to-day, but it ranges from approximately $500 on a slow weekday to $2,000 on the busier weekend days. The damages provision in this contract is O 1) a penalty clause. 2) a liquidated damages clause. 3) an example of consequential damages. 4) a confiscation of property.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 45P

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