liquidated damages

Definition of "liquidated damages"
  1. A sum agreed upon by the parties in a contract which one party will pay to the other in case of breach instead of actual damages
How to use "liquidated damages" in a sentence
  1. The company included a clause for liquidated damages in the contract in case the supplier failed to deliver on time.
  2. She had to pay the liquidated damages for ending the lease early.
  3. In case of breaching the contract, the vendor will be liable for liquidated damages.

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