In the case of liquidated damages, how are the damages calculated or decided? Select one:
a. A pre-estimated amount that a party will need to pay should there be a breach of the contract. The amount is set excessively high to encourage performance and deter breach.
b. On the basis of a pre-estimated amount of damages (estimated at the time of entering into the contract) to be awarded in the event of a breach of contract occurring.
c. Damages are quantified by the courts following a breach.
d. Damages are negotiated and agreed upon by the parties following the breach.