Liquidated Damages Clause

Business, Legal & Accounting Glossary

Definition: Liquidated Damages Clause


Liquidated Damages Clause


Full Definition of Liquidated Damages Clause


A term of a contract which sets out an amount of money to be paid by one party to another, in the event that there is some default on the duties in the contract. It is a defining feature of a liquidated damages clause that it genuinely addresses the losses that flow from the default, and does not attempt simply to penalise the default — this would be a penalty clause.


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Definition Sources


Definitions for Liquidated Damages Clause are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th April, 2020 | 0 Views.