Courts will enforce a liquidated damages provision as long as the actual amount of damages is difficult to ascertain and the sum is reasonable in light of the expected harm.

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This is the general rule in most states, although some jurisdictions have additional requirements such as a showing of actual damages before enforcing a liquidated damages clause. Additionally, the sum specified must not be a penalty, but rather a good faith estimate of actual damages.

Courts Will Enforce a Liquidated Damages Provision as Long as the Actual