SealCoat Paving enters into a contract with Royal Golf & Tennis Club to provide surface material for Royal$$s tennis courts by April $1$ for a tournament to begin May $1.$ The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is

meant to pay for additional liquid sealant in the event of damage.

a reasonable estimate of the loss on a breach.

designed to penalize the breaching party.

intended to quickly provide cash to the nonbreaching party.