Business, Legal & Accounting Glossary
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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This glossary post was last updated: 6th April, 2020 | 0 Views.