Definition of Liquidated damages:
Damage is provided in some legal agreements as an estimate of non-final or final damage to either party. This is a condition that allows the payment of a certain amount in the event of a breach of contract by either party.
The amount of money (agreed upon and in writing in the agreement) is declared as the total amount of damages suffered by the injured party if any part of the agreement is violated. The agreement also specifies which action or mistake is violated. In order for a contract to be legally enforceable, the contract must be such that it is difficult to determine the actual damage and the amount of damage is reasonable in the circumstances. Otherwise, the law may consider fines (primarily included in its performance enforcement agreement) instead of compensation. In this case, the damages are considered unpaid damages and will be assessed by the court according to their suitability.
The purpose of the loss is to fairly represent the loss in situations where it is difficult to determine the actual damage. In general, the fixed rate of compensation should be fair and not criminal.
How to use Liquidated damages in a sentence?
- Courts usually require the parties to make the most appropriate review of the compensation clause when signing an agreement.
- The company received adequate compensation for the accident in case of losses, so that in the end, all parties were satisfied.
- Damage is provided in some legal agreements as an estimate of non-final or final damages to either party.
- Loss is a fair representation of damage in situations where it is difficult to determine the actual damage.
- I had to get compensation from the company because I had to suffer huge losses.
- This counter-party agreement includes compensation to one party for breach of its original agreement.
Meaning of Liquidated damages & Liquidated damages Definition