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Liquidated damage refers to the
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- cost borne by the contractor to rectify defects within defect-liability period
- compensation paid on breach of contract to the affected party by the other party
- money paid by the insurance company to the owner of insured property if it is damaged
- money earned by the owner fr om selling damaged property through auction
Correct Option: B
Liquidated damages (also referred to as liquidated and ascertained damages) are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance).
