§ 29.1 Introduction

LibraryDamages (OSBar) (2016 Ed.)
§ 29.1 INTRODUCTION

The term liquidated damages is commonly defined as a fixed sum of money, or a formula to determine a fixed sum, provided by contract that establishes the amount of damages to be paid to another by a party who breaches the contract. It is important to differentiate liquidated damages from amounts considered due when a contract term has been satisfied. Such amounts are not subject to the same limitations related to liquidated damages. See DiTommaso Realty, Inc. v. Moak Motorcycles, Inc., 309 Or 190, 192, 785 P2d 343 (1990) (distinguishing provisions for liquidated damages from "an independent, valid contractual promise").

A provision for liquidated damages is legally enforceable only if the amount "is reasonable in the light of the anticipated or actual harm caused by the breach, the difficulties of proof of loss, and the inconvenience or...

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