On March 1, Mechanic contracted to repair Textiles' knitting machine and to complete the job by March 6. On March 2, Textiles contracted to manufacture and deliver specified cloth to Knitwear on March 15. Textiles knew that it would have to use the machine then under repair to perform this contract. Because the Knitwear order was for a rush job, Knitwear and Textiles included in their contract a liquidated damages clause, providing that Textiles would pay $5,000 for each day's delay in delivery after March 15. Mechanic was inexcusably five days late in repairing the machine, and, as a result, Textiles was five days late in delivering the cloth to Knitwear. Textiles paid $25,000 to Knitwear as liquidated damages and now sues Mechanic for $25,000. Both Mechanic and Textiles knew when making their contract on March 1 that under ordinary circumstances Textiles would sustain little or no damages of any kind as a result of a five-day delay in the machine repair. Assuming that the $5,000 liquidated damages clause in the Knitwear-Textiles contract is valid, which of the following arguments will serve as Mechanic's best defense to Textiles' action? 
Time was not of the essence in the Mechanic-Textiles contract. Mechanic had no reason to foresee on March 1 that Knitwear would suffer consequential damages in the amount of $25,000.  By entering into the Knitwear contract while knowing that its knitting machine was being repaired, Textiles assumed the risk of any delay loss to Knitwear.  In all probability, the liquidated damages paid by Textiles to Knitwear are not the same amount as the actual damages sustained by Knitwear in consequence of Textiles' late delivery of the cloth.
Question: On March 1, Mechanic contracted to repair Textiles' knitting machine and to complete the job by March 6. On March 2, Textiles contracted to manufacture and deliver specified cloth to Knitwear on March 15. Textiles knew that it would have to use the machine then under repair to perform this contract. Because the Knitwear order was for a rush job, Knitwear and Textiles included in their contract a liquidated damages clause, providing that Textiles would pay $5,000 for each day's delay in delivery after March 15. Mechanic was inexcusably five days late in repairing the machine, and, as a result, Textiles was five days late in delivering the cloth to Knitwear. Textiles paid $25,000 to Knitwear as liquidated damages and now sues Mechanic for $25,000. Both Mechanic and Textiles knew when making their contract on March 1 that under ordinary circumstances Textiles would sustain little or no damages of any kind as a result of a five-day delay in the machine repair. Assuming that the $5,000 liquidated damages clause in the Knitwear-Textiles contract is valid, which of the following arguments will serve as Mechanic's best defense to Textiles' action? 
A. Time was not of the essence in the Mechanic-Textiles contract.
B. Mechanic had no reason to foresee on March 1 that Knitwear would suffer consequential damages in the amount of $25,000. 
C. By entering into the Knitwear contract while knowing that its knitting machine was being repaired, Textiles assumed the risk of any delay loss to Knitwear. 
D. In all probability, the liquidated damages paid by Textiles to Knitwear are not the same amount as the actual damages sustained by Knitwear in consequence of Textiles' late delivery of the cloth.
Answer: