Liquidated Damages

Learn about the definition for this legal term.

What is Liquidated Damages?

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.

Further Reading

For more detailed information, see our related Contracts terms:

Pass the Bar, Guaranteed

BarPrepHero Premium offers the most complete collection of real bar exam questions licensed directly from NCBE (the organization that writes the exam).
Bar Exam starts in:
Days
Hrs
Mins
Secs
Study better now