A liquidated damages clause is the same as a penalty clause.

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A liquidated damages clause is a clause in a contract that specifies the amount of money one party will pay the other in the event of a breach. The purpose is to provide certainty and avoid the need for a court to determine the amount of damages. A penalty clause, on the other hand, imposes a punishment or fine for a breach of the contract and is unenforceable in many jurisdictions.

A Liquidated Damages Clause Is the Same as a Penalty