A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.

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A liquidated damages clause that is a reasonable forecast of just compensation for the harm that is caused by the breach, especially when actual damages are uncertain or difficult to quantify, is generally enforceable and upheld by courts.

A Liquidated Damage Clause That Represents a Reasonable Approximation of the Damages