Question
In contracts remedies, and more specifically liquidated damages clauses, what happen when the clause state the amount of damages only for one party. For example
In contracts remedies, and more specifically liquidated damages clauses, what happen when the clause state the amount of damages only for one party. For example A and B entered into a K that says that in the event B breaches the K, A will recover $200K in damages. Is it ok that the clause provides damages for one party only? or does it make it invalid?
Question 2: if for a liquidated damages clause to be valid it must be that damages were difficult to calculate or uncertain, how come the other requirement is that they must be reasonable close to the foreseeable loss? how can the parties know what's "close" when it's uncertain? how does the actual damages amount affect the analysis of the validity of a liquidated damages clause? say for instance the clause was $200K and the actual damages were $30K. Does it make it invalid?
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