Alarm corporation asserted which its maximum liability

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Q. Protection Alarm Co. made a contract to provide burglar alarm security for Fret well's home. The contract stated which the maximum liability of the alarm corporation was the actual loss sustained or $50, whichever was the lesser and which this provision was agreed to "as liquidated damages and not as a penalty". When Fret well's home was burglarized, he sued for the loss of approximately $12,000, claiming which the alarm corporation had been negligent. The alarm corporation asserted which its maximum liability was $50. Fret well claimed which this was invalid because it bore no relationship to the loss which could have been foreseen when the contract was made or which in fact "had been sustained." Decide.

Reference no: EM1384862

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