\lˈɪkwɪdˌe͡ɪtɪd dˈamɪd͡ʒɪz], \lˈɪkwɪdˌeɪtɪd dˈamɪdʒɪz], \l_ˈɪ_k_w_ɪ_d_ˌeɪ_t_ɪ_d d_ˈa_m_ɪ_dʒ_ɪ_z]\
Definitions of LIQUIDATED DAMAGES
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Cash compensation, agreed to by signed, written contract for breach of contract, payable to the aggrieved party. The contract succinctly specifies what actions, or omissions, constitute a breach. To be legally enforceable, the contractâ€™s nature makes damages circumstantially reasonable and difficult to determine. Otherwise, a court could interpret the specified amount as a fine, being in the contract primarily to force proper performance, and not to compensate injury. Under these conditions, the court views damages as â€˜unliquidatedâ€™ to be assigned by the court based on the caseâ€™s merits alone.
By Henry Campbell Black
Word of the day
- To raise; set up; stir up. Backward; in or to the rear; behindhand. a-r[=e]r', adv. in the rear. [A.S. pfx. a-, on, to, and REAR.]