Vista Properties,Inc. ,leases an office building to World Corporation.At the time,the amount of damages on World's default is difficult to de?termine,so the parties reasonably estimate,and the lease provides,that if World defaults,Vista is entitled to $50,000 as "liquidated damages." This amount is

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The lease provides for a reasonable estimate of damages in the form of liquidated damages, which is enforceable. It is not an unenforceable limitation of liability nor an unenforceable penalty. Punitive damages are not applicable in this scenario as they are awarded to punish the wrongdoing of a party, and not as compensation for damages.