Bar Exam Uniform Quiz
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You are representing a construction company that is negotiating a contract to build an office building. The client wants to include a liquidated damages clause for delays caused by the company. The client's goal is to have an enforceable provision that reasonably compensates the owner for delays without being deemed an unenforceable penalty. The initial draft contains the following clause:
Original Provision: "In the event of a delay in project completion attributable to the Contractor, the Contractor shall pay the Owner a penalty of $5,000 for each day of delay."
Which of the following revisions to the provision would best achieve the client's goal of creating an enforceable liquidated damages clause? Select one.
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