A liquidated damages provision specifies an amount to be paid in the event of a future default or breach of contract to make the innocent party whole.

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A liquidated damages provision is indeed designed to specify in advance the amount of damages to be paid if one party breaches the contract, aiming to make the non-breaching party whole without the need for a lengthy litigation process to prove actual damages.

A Liquidated Damages Provision Specifies an Amount to Be Paid