liquidated damages
US /ˈlɪk.wɪ.deɪ.tɪd ˈdæm.ɪ.dʒɪz/
UK /ˈlɪk.wɪ.deɪ.tɪd ˈdæm.ɪ.dʒɪz/
1.
a sum of money agreed upon by the parties at the time of their mutual assent to a contract as a genuine pre-estimate of the probable damages that would be suffered in the event of a breach
:
•
The contract included a clause for liquidated damages in case of late delivery.
•
The court upheld the liquidated damages clause as a reasonable estimate.