Contracts-Liquidated Damages
Another form of damage that may be recoverable as part of a breach of a contract claim is what is known as liquidated damages. Liquidated damages are expressly set forth in the contract in the event there is a breach. For instance, in many construction contracts it is expressly agreed by the parties that if the contractor does not complete the job by a certain date, he or she will have to pay damages of a fixed amount per day. Liquidated damages are frequently called for in contracts because it may be difficult for the parties to determine what the actual monetary damages are in the event of a breach or, in this case, a delay in performance.
