'Liquidated damages' are:

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Liquidated damages are a pre-estimate of the quantity to be paid in damages in case of a breach of contract. This amount is determined beforehand by the parties involved and is included in the contract as a clause. The purpose of liquidated damages is to avoid the need for a court to determine the amount of damages in case of a breach. This means that the amount of damages is already established, so the party that breaches the contract is aware of the consequences of their actions.

'Liquidated Damages' Are