the.com/liquidated damages
the breakup fee you agreed to before the relationship even started.
means a pre-set dollar amount written into a contract that one party pays if they breach it, instead of fighting over actual losses later.
from from latin liquidus, meaning clear or fluid — the damages are made liquid, i.e. settled and certain, rather than left murky for a jury to guess.
must be reasonablecourts toss it if it looks like a penalty.
common inconstruction delays and lease breaks.
saves lawsuitsavoids proving actual harm in court.
opposite moveactual damages require messy proof later.