Question

Global Marketing contracted with Tech Smart Company to maintain Global's computer system. Global's marketing process depends on its computer system operating properly at all times. A liquidated damages clause in the contract provided that Tech Smart pay $1,000 to Global for each day that Tech Smart was late responding to a service request. On September 1, Tech Smart was notified that Global's computer system had failed. Tech Smart did not respond to Global's service request until September 15. If Global Marketing sues Tech Smart under the liquidated damages provision of the contract, Global will:

Answer 1

If Global marketing should go ahead to sue under this contract they are going to win unless the liquidated damage provision is determined to be a penalty

What is the  liquidated damages provision?

This is a contract in business law that requires that a party that breaches a contract goes ahead to pay a particular amount as compensation.

The compensation that they are to pay is due to their failure that carry out the task they were supposed to.

Read more on contract breach here:

https://brainly.com/question/12790234

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