Anthony owns an ice cream shop, which has banana splits as its best seller. Anthony has bananas delivered every Saturday morning for the weekend rush and week ahead. The delivery agreement is for 40 pounds of bananas for $15, and it includes a clause by which the delivery company will pay Anthony $500 if it fails to deliver without notice. One Saturday, they fail to deliver without notice and Anthony has to buy 40 pounds of bananas at the store, for which Anthony pays $20. Make me find the answer myself, do not give me the answer.Which of the following is true regarding the clause that the delivery company will pay Anthony $150 when it fails to deliver without notice?Question 12 options:
It will be upheld as a stipulated amount.
It will be upheld because the penalty bears a reasonable relationship to Anthony’s foreseeable costs upon non-delivery.
It is unenforceable as a penalty because it bears an unreasonable relationship to Anthony’s foreseeable costs.
It will be upheld based on the principle of freedom of contract.
It is unenforceable because parties are prohibited from specifying damages in a contract.
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