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Question: Todd makes a contract to sell a rare painting to Isabelle for $10,000. The witten contract specifies that it Todd should fail to deliver the painting he vill pay sabele liquidated damages in the amount of S5,000. When Tod fails to deliver the painting, Isabelle sues him for $5,000.
(A) What are liquidated damages and how do they compare to compensatory damages?
(B) What test does a court use to determine t liquidated damages are appropriate in a particular situation?
(C) Can Isabel recover liquidated damages here? Explain.
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