A liquidated damages clause allows parties to set the amount of damages in the event of breach.

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A liquidated damages clause is a contractual provision that allows the parties to agree on the amount of damages to be paid by the breaching party in the event of a breach. This clause is typically included in contracts to provide certainty and predictability regarding the potential damages that may arise in the event of a breach.

A Liquidated Damages Clause Allows Parties to Set the Amount