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Liquidated damages provisions usually areenforceable in contracts. Penalty clauses usually are unenforceable in contracts. In order to determine whether a contract provision is a liquidated
Liquidated damages provisions usually areenforceable in contracts. Penalty clauses usually are unenforceable in contracts. In order to determine whether a contract provision is a liquidated damages provision or penalty clause, a court will first ask: when the contract was entered into was it apparent that damages would beeasy to estimate in the event of a breach?
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