A liquidated damages clause will be enforced by the court if at the time the contract is made the amount is a genuine pre-estimate of the damages that a Court would award.

Name: A liquidated damages clause will be enforced by the court if at the time the contract is made the amount is a genuine pre-estimate of the damages that a Court would award.
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A liquidated damages clause is enforceable if it represents a genuine pre-estimate of the loss anticipated from a breach, rather than a penalty.

A Liquidated Damages Clause Will Be Enforced by the Court