A). When the injured party sustains no actual losses in a breach of contract action, a court:
1. cannot compensate the injured party.
2. will award liquidated damages.
3. may award nominal damages.
4. will base its decision on quasi-contractual principles.
B). Z-Mart and A-1 Construction Company (A-1) agree to a liquidated damages clause of a certain amount on a per diem basis. In such cases, the parties are agreeing in advance that:
1. upon breach, a certain amount of money will be paid to the injured party.
2. defendant, if proven at fault, must liquidate all assets in order to grant plaintiff restitution.
3. either party may resecind the contract at will.
4. should breach occur, only remedies at law will be available.