Contract Tutorials on Remedies - Liquidated Damages
This lesson explains the concept of liquidated damages. A liquidated damages clause in a contract states what damages the breacher will owe the non-breacher in the event of breach. You will have a chance to familiarize yourself with some sample clauses. Moreover, the material deals with enforceability of the clause under the common law as well as the UCC (§ 2-718). The lesson ends with a number of review questions on this subject.