Carswell,a contractor,enters into a contract with Helen,a homeowner,to remodel her bathroom.The contract provides a specific completion date.The contract provides that if Carswell does not have the job finished by the date,Helen may deduct $200 per day from the contract price until the job is finished.This is an example of liquidated damages.

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Liquidated damages are predetermined and agreed upon damages that parties to a contract agree to in advance as compensation in the event of a breach of contract. In this case, the contract between Carswell and Helen specifically states that if Carswell fails to complete the job by the specified date, Helen can deduct $200 per day from the contract price. This is an example of liquidated damages.

Carswell,a Contractor,enters into a Contract with Helen,a Homeowner,to Remodel Her