Liquidated damages provisions are used when parties are not able to ascertain the exact damages attributable to a breach.

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Liquidated damages provisions specify a predetermined amount of damages that will be payable in the event of a breach, and are commonly used in situations where determining the actual damages would be difficult, time-consuming, or costly. This helps to provide certainty and predictability in the event of a breach.

Liquidated Damages Provisions Are Used When Parties Are Not Able