Damages that are agreed upon at the time the contract is entered into are called _____.

Question

Quizplus · Accepted Answer

Liquidated damages are damages that are agreed upon at the time the contract is entered into. This means that the parties to the contract have predetermined the amount of damages that will be payable in the event of a breach. Compensatory damages are damages that are intended to compensate the injured party for the actual harm suffered as a result of the breach. Consequential damages are damages that flow indirectly from the breach, such as lost profits or revenues. Mitigated damages are damages that have been reduced or moderated.

Damages That Are Agreed Upon at the Time the Contract