A/An _____ provision stipulates the mechanism to be used in determining any costs and damages to the injured party in the event of a breach of contract.

Question

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A liquidated damages provision is used to determine the amount of damages to be paid in the event of a breach of contract. The provision specifies a fixed amount or a calculation methodology for damages that will be incurred if a breach occurs. This provision is typically used to provide certainty and predictability in resolving disputes related to breach.

A/An _____ Provision Stipulates the Mechanism to Be Used in Determining