In a case where a party to an agreement of previously determined penalties suffers due to a breach of contract,

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In a case where an agreement has previously determined penalties in the event of a breach, the courts will award liquidated damages. This is a predetermined amount of damages agreed upon by both parties in advance, and is meant to provide clarity and certainty in the event of a breach. The suffering party does not need to prove actual damages, as the amount has already been agreed upon in the contract.

In a Case Where a Party to an Agreement of Previously