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MMLU-Pro / 1630 / A contractor agreed with a city government to build it a bridge. The contractor…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A contractor agreed with a city government to build it a bridge. The contractor was guilty of undue delay in getting the bridge construction finished. The contract had a liquidated damages clause that provided for a deduction from the contract price for each day of delay in completing the bridge. The formula for the deductions from the contract price was based on how much traffic flow was turned away. The city tried to deduct the damages from the contract price. The contractor, however, pointed out that the city had not yet connected a road to the bridge so that there was no traffic flow and hence no damage to the city. Will the court uphold the liquidated damages clause in favor of the city?

category

law

options

  1. No, because the city has not suffered any loss due to the delay as there was no traffic flow.
  2. Yes, because the contractor failed to deliver on the agreed timeline, regardless of whether the city had connected a road or not.
  3. Yes, because the contract provision for liquidated damages has been breached and the city had no obligation to connect a road.
  4. No, because the city breached the contract by not connecting a road to the bridge.
  5. Yes, because the bridge delays caused the city to delay finishing the road, thereby creating the need to enforce the provision for liquidated damages.
  6. No, because the liquidated damages clause is only enforceable if there are actual damages, which there are not in this case.
  7. Yes, because the liquidated damages clause serves to penalize the contractor for the delay, regardless of the city's actions.
  8. No, because the city's failure to perform has frustrated the purpose of the liquidated damages clause, making liquidated damages in this case unnecessary due to no damages suffered.
  9. Yes, because the liquidated damages clause is enforceable irrespective of the actual damages suffered.

src

ori_mmlu-professional_law

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Source and history

upstream_id / Original problem ID
1630
task_id
9a228a0c-bf13-50d9-8b07-e46c4915ed58
task_key
default--test--1630
task_revision_id
1
config / split
default / test

Official source

initial import