California Partition Law Blog
In many contracts, the parties know that one person will be harmed if the other one breaches, but also realize that damage would be hard to calculate. So, what is a person to do to protect themselves from loss while also living their life in a way to pursue their goal? How can the law help people in that situation?
In California, liquidated damages are designed to provide compensation if a hired party fails to perform their job by setting out the specific amount of damages that will be paid if a contract is breached. Liquidated damages are not intended to punish the breaching party. Understanding the purpose and function of liquidated damages will help ensure compensation is available when damages suffered are difficult to prove.
What are Liquidated Damages?