Midtown Holdings Inc. contracts to sell a commercial parking garage to Nuevo Property LLC. The contract provides that if Midtown does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is

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A provision designed to penalize a party for breach of contract is generally not enforceable. Courts typically enforce liquidated damages clauses only if they are a reasonable estimate of the actual damages that would result from a breach, not if they are intended as a penalty.