A liquidated damages provision specifies that a certain amount to be paid in the event of a future default or breach of contract.

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A liquidated damages provision is a contractual term that requires a party to pay a specific amount of money as damages in the event of a future default or breach of contract. This provision allows parties to avoid lengthy litigation over damages and provides some certainty in the event of a breach.

A Liquidated Damages Provision Specifies That a Certain Amount to Be