Liquidated damage clauses typically require a party who breaches a con?tract to pay a certain amount to the nonbreaching party.

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Liquidated damage clauses are a common feature in contracts and are designed to provide a predetermined amount of compensation to the nonbreaching party in the event of a breach by the other party. This amount typically reflects the estimated cost or damage caused by the breach, and is intended to simplify the process of calculating damages and resolving disputes that arise from a breach of contract.

Liquidated Damage Clauses Typically Require a Party Who Breaches a Con?tract