Dictionary of Business Terms: liquidated damages
liquidated damages
stipulated contractual amount that the parties agree is a reasonable estimation of the damages owed to one in the event of a breach by the other.
Dictionary of Real Estate Terms: liquidated damages
liquidated damages
an amount agreed upon in a contract that one party will pay the other in the event of a breach of contract
Example: Abel engages a builder to erect a house. The contract says that if the builder fails to complete it by March 1, 2005, the builder will pay $100 per day thereafter until completion, as liquidated damages.
