Word Formation

Word formation 

Change the word in brackets so that they make sense in the sentences. You may  need to make some words negative. Be careful: one word does not need to be changed.

1.    At the time of ___________ (contract),parties to an ____________ (agree) often want to calculate the damages one or both would incur upon breach of contract by the other.

2.    By stipulating such damages before a breach, the _________ (injure)party can avoid the ____________ (substance)costs which often arise and the ____________ (difficult) of proving the amount of its loss.

3.    Such clauses, when ___________ (reason) designed to compensate a party for its __________ (injure) caused by a breach, are ___________ (enforce)

4.    On occasion, a ___________ (contract) party may attempt to ensure that the other party will perform its promise by inserting a clause which imposes a ____________ (consider) penalty for __________ (perform).

5.    A penalty ____________ (provide) is not intended to compensate the injured party for the expected loss ____________ (occasion) by the breach.

6.    A contractual penalty clause is intended as a _____________ (deter) against a breach by specifying damages  which the parties know would probably be much higher than could otherwise ___________ (ordinary) be recovered by the ____________ (breach) party.

7.    A contractual penalty for breach is ____________ (enforce) in many jurisdictions. A court may require the ___________ (injure) party to prove its loss in accordance with general principles _____________ (apply) to damages for breach of contract.

8.    ___________ (consequence), Knowing the _____________ (distinct) between a provision for a penalty and for liquidated damages when drafting a damages clause may be critical to __________(enforce).

9.    The parties intended to __________ (quantity the damages in advance of the __________ (lose)

10.      The amount __________  (stipulate) in the provision is ____________ (reason) in that it not greatly _____________(proportion) to the presumed ____________ (injure) or loss.

11.      Elements a (and c) are____________ (appear) __________(contradict).

12.      More recent decisions have giver little or no ___________ (weigh) to the second element, i.e, the subjective __________ (intend) of the parties.

13.      Rather, they take all three elements into account, along with other facts, such as the ___________ (relate) ____________ (bargain) power of the parties, in determining the ____________ (reasonable) of the clause at issue.

14.      ____________ (custom), courts look to the time of contract to decide the reasonableness of stipulated damages.

15.      It would be difficult for the ____________ (breach) party to argue that the amount _________ (forecast) in the liquidated damages clause was ___________ (reason).

16.      The Uniform Commercial Code accepts a liquidated- damages clause if the amount stipulated was reasonable ___________ (consider) the actual loss.