If there is an increase in price of petrol, there would be a movement along the demand curve and a smaller quantity would be bought.
Liquidated Damages: These types of damages are awarded when there is a provision in a contract which states the amount of damages that shall be awarded in the event of a breach. Liquidated damages cannot be used as punishment to a party or to harm the party for the breach.
Bernstein-Burkley, P.C. It is a staple of contract law that the non-breaching party should be compensated for the âbenefit of the bargain.â However, when the bargain is struck between an employer and an employee in a non-competition covenant, ordinary contract law principles may be outweighed by policy considerations.