Read the case below and answer the two questions whichfollow.
Mitigation of Damages:
Liquidated Damages versus Penalties.Every homeowner in the Putnam County, Indiana, subdivision ofStardust Hills must be a member of the Stardust Hills OwnersAssociation, Inc., and must pay annual dues of $200 for themaintenance of common areas and other community services. Under theAssociation’s rules, dues paid more than ten days late “shall beara delinquent fee at a rate of $2.00 per day.” Phyllis Gaddis owneda Stardust Hills lot on which she failed to pay the dues. Late feesbegan to accrue. Nearly two months later, the Association filed asuit in an Indiana
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