Construction company C and landlord L negotiate to build an office building for occupancy on September 1. Landlord L wants to sign up commercial renters to occupy the building on September 1. Unforeseeable causes often delay construction projects. C is willing to take this risk. C proposes a price of $10 million and a liquidation clause requiring C to pay L $1,500 per day for completing the building late.

You are a lawyer hired by L to help on the contract. L tells you in private that he will actually lose $1,000 per day of delay, not $1,500 per day. How would you explain to L that he might benefit from proposing to reduce liquidated damages from $1,500 to $1,000 per day?