A liquidated damages clause is a contractual provision stipulating the amount of damages to be paid in the event of default or breach of contract.

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A liquidated damages clause is a common contractual provision that sets forth the amount of damages to be paid in the event of a specific type of breach or default. This provision is typically negotiated by the parties and serves to provide some level of certainty and predictability in the event of a dispute or breach of contract. If the liquidated damages provision is deemed to be reasonable, it will be enforceable by a court. However, if the provision is found to be excessive or punitive, it may be deemed unenforceable.

A Liquidated Damages Clause Is a Contractual Provision Stipulating the Amount