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liquidated damages :: legal definition


Liquidated damages - n. an amount of money agreed upon by both parties to a contract which one will pay to the other upon breaching (breaking or backing out of) the agreement or if a lawsuit arises due to the breach. Sometimes the liquidated damages are the amount of a deposit or a down payment, or are based on a formula (such as 10% of the contract amount). The non-defaulting party may obtain a judgment for the amount of liquidated damages, often based on a stipulation (clear statement) contained in the contract, unless the party who has breached the contract can make a strong showing that the amount of liquidated damages was so "unconscionable" (far too high under the circumstances) that it appears there was fraud, misunderstanding or basic unfairness.

See also: contract damages and Related Law Terms ↓


Related Law Terms

accrue :: v. 1) growing or adding to, such as interest on a ... the contract (anticipatory breach).
amend :: v. to alter or change by adding, subtracting, or s ... mended pleading statute stipulation
anticipatory breach :: n. when a party to a contract repudiates (reneges ... perform. See also: breach contract
at will employment :: n. a provision found in many employment contracts ... ons. See also: wrongful termination
bilateral contract :: n. an agreement in which the parties exchange prom ... also: contract unilateral contract
breach :: 1) n. literally, a break. A breach may be a failur ... breach of trust breach of warranty
breach of contract :: n. failing to perform any term of a contract, writ ... breach breach specific performance
cause of action :: n. the basis of a lawsuit founded on legal grounds ... property. See also: element lawsuit
commercial frustration :: n. an unforeseen uncontrollable event which occurs ... rustration of purpose impossibility
comparative negligence :: n. a rule of law applied in accident cases to dete ... utory negligence damages negligence
condition precedent :: n. 1) in a contract, an event which must take plac ... o the property. See also: condition
consent decree :: n. an order of a judge based upon an agreement, al ... he same. See also: consent judgment
consideration :: n. 1) payment or money. 2) a vital element in the ... t of a promise). See also: contract
contract :: 1) n. an agreement with specific terms between two ... n oral contract unilateral contract
contributory negligence :: n. a doctrine of common law that if a person was i ... : comparative negligence negligence
cost of completion :: n. the amount of money (damages) required to compl ... d on percentage of work to be done.
cross-complaint :: n. after a complaint has been filed against a defe ... g prayer service of process summons
damages :: n. the amount of money which a plaintiff (the pers ... liquidated damages special damages
declaratory judgment :: n. a judgment of a court which determines the righ ... ys it. See also: declaratory relief
election of remedies :: n. an outmoded requirement that if a plaintiff (pa ... dence has not been fully presented.
fraud :: n. the intentional use of deceit, a trick or some ... audulent conveyance intrinsic fraud
implied covenant of good faith and fair dealing :: n. a general assumption of the law of contracts, t ... -long employment. See also: implied
installment contract :: n. an agreement in which payments of money, delive ... n contract failure of consideration
last clear chance :: n. a rule of law in determining responsibility for ... contributory negligence negligence
liability :: n. one of the most significant words in the field ... bility joint tortfeasors negligence
libel :: 1) n. to publish in print (including pictures), wr ... libel per se public figure slander
limited liability :: n. the maximum amount a person participating in a ... ted damages partnership shareholder
mistake :: n. 1) an error in comprehending facts, meaning of ... time. See also: contract rescission
motion for a summary judgment :: n. a written request for a judgment in the moving ... strict procedures. See also: motion
negligence :: n. failure to exercise the care toward others whic ... gence per se res ipsa loquitur tort
novation :: n. agreement of parties to a contract to substitut ... . See also: accord and satisfaction
partial breach :: n. the failure to meet a term of a contract which ... g in the missing or expected items.
party :: n. 1) one of the participants in a lawsuit or othe ... y real party in interest respondent
party of the first part :: n. reference in a written contract to identify one ... ies another party to the agreement.
peremptory challenge :: n. the right of the plaintiff and the defendant in ... challenge for cause jury voir dire
promise :: 1) n. a firm agreement to perform an act, refrain ... so: consideration contract covenant
quantum meruit :: : (kwahn-tuhm mare-ooh-it) n. Latin for "as much a ... uit by implying a contract existed.
repudiation :: n. denial of the existence of a contract and/or re ... also: anticipatory breach contract
rescind :: v. to cancel a contract, putting the parties back ... celling party. See also: rescission
severable contract :: n. an agreement which is made up of several separa ... e also: breach of contract contract
specific performance :: n. the right of a party to a contract to demand th ... artwork. See also: contract prayer
statute of limitations :: n. a law which sets the maximum period which one c ... ies. See also: demurrer laches toll
suffering :: n. the pain, hurt, inconvenience, embarrassment an ... njury negligence pain and suffering
third party :: n. a person who is not a party to a contract or a ... beneficiary third-party beneficiary
third-party beneficiary :: n. a person who is not a party to a contract but h ... tract as a third-party beneficiary.
trial :: n. the examination of facts and law presided over ... at a hearing held at a later time.
unconscionable :: adj. referring to a contract or bargain which is s ... ee also: adhesion contract contract
Workers' Compensation Acts :: n. state statutes which establish liability of emp ... rs' compensation insurance company.
wrongful death :: n. the death of a human being as the result of a w ... ual beneficiaries (family members).
wrongful termination :: n. a right of an employee to sue his/her employer ... ing an employee's grounds for suit.

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - L

labor and materials :: (time and materials) n. what some builders or repa ... track of actual labor hours worked.
laches :: n. the legal doctrine that a legal right or claim ... , breach of contract, fraud, etc.).
land :: n. real property, real estate (and all that grows ... See also: real estate real property
landlady :: n. female of landlord or owner of real property fr ... rents or leases. See also: landlord
landlocked :: adj. referring to a parcel of real property which ... which it was created (carved out).
landlord :: n. a person who owns real property and rents or le ... so: lease lessee lessor rent tenant
landlord and tenant :: n. the name for the area of law concerning renting ... ord lease lessee lessor rent tenant
landlord's lien :: n. the right of a landlord to sell abandoned perso ... to the ex-tenant and a public sale.
lapse :: 1) v. to fail to occur, particularly a gift made i ... eficiary devisee legatee trust will
larceny :: n. the crime of taking the goods of another person ... : grand larceny petty larceny theft
last antecedent rule :: n. a doctrine of interpretation (construction) of ... o trucks and not boats or tractors.
last clear chance :: n. a rule of law in determining responsibility for ... contributory negligence negligence
last will and testament :: n. a fancy and redundant way of saying "will." Law ... writing another one. See also: will
latent defect :: n. a hidden flaw, weakness or imperfection in an a ... warranty product liability warranty
lateral support :: n. the right of a land- owner to assurance that hi ... support problems are less dramatic.
law :: n. 1) any system of regulations to govern the cond ... um maritime law natural law statute
law and motion calendar :: n. a court calendar in which only motions and spec ... special legal arguments are heard.
law book :: n. any of numerous volumes dealing with law, inclu ... : common law law Shepardize statute
law of admiralty :: n. statutes, customs and treaties dealing with act ... w. See also: Jones Act maritime law
law of the case :: n. once a judge has decided a legal question durin ... he ruling is the "law of the case."