Difference between liquidated and unliquidated damages

Liquidated damages are predetermined, agreed-upon damages that must be paid in the event of a breach of contract, while unliquidated damages are damages that are not predetermined and must be calculated based on the actual harm caused by the breach. In other words, liquidated damages are a specific dollar amount specified in the contract, whereas unliquidated damages are determined after the breach has occurred. Liquidated damages provide certainty and predictability for both parties, while unliquidated damages allow for more flexibility and consideration of individual circumstances.

This mind map was published on 12 May 2024 and has been viewed 97 times.