Damages that are fixed in the contract for the amount to be awarded in the event of a breach are known as:

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Damages that are fixed in the contract for the amount to be awarded in the event of a breach are known as liquidated damages. The amount of liquidated damages is agreed upon by the parties prior to the execution of the contract and serves as a pre-estimate of the damages that may be incurred in the event of a breach. This helps to avoid the need for litigation to determine the amount of damages to be awarded. Punitive damages are intended to punish the wrongdoer and are not typically included in contracts. Consequential damages are the indirect and foreseeable damages resulting from a breach, and conditional damages are damages that are contingent upon the occurrence of a specific event.

Damages That Are Fixed in the Contract for the Amount