Liquidated Damage Clause
/ˈlɪkwɪˌdeɪtɪd ˈdæmɪdʒ klɔːz/
Definitions
- (n.) A contractual provision specifying a predetermined sum payable as damages for breach, where actual harm is difficult to quantify.
The contract included a liquidated damage clause requiring payment of $10,000 for each day of delay.
Forms
- liquidated damage clause
- liquidated damage clauses
Related terms
See also
Commentary
Ensure liquidated damage clauses represent a genuine pre-estimate of loss to avoid invalidation as a penalty.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.