liquidated damages

liquidated damages definition - business

liquidated damages

The amount agreed upon that will be paid by one party to the other in the event a contract is violated. For example, a contractor may be required to pay liquidated damages in the event a project is not completed by a stipulated date.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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