Liquidated Damages

Liquidated damages are enforceable if reasonable at formation and not punitive.

Representative cases

• Sevast v. Kakouras 915 A.2d 1147 · Supreme Court of Pennsylvania
• H&M Commercial Driver Leasing, Inc. v. Fox Valley Containers, Inc. 805 N.E.2d 1177 · Illinois Supreme Court
• Dobson Bay Club II DD, LLC v. La Sonrisa De Siena, LLC 242 Ariz. 108 · Arizona Supreme Court

Related Remedies rules

• Expectation DamagesDamages aim to put the nonbreaching party in the position as if the contract were performed.
• Consequential DamagesDamages are recoverable if foreseeable at the time of contracting.
• Incidental DamagesIncidental damages include reasonable expenses incurred due to breach.
• Mitigation of DamagesNonbreaching parties must take reasonable steps to mitigate damages.
• Restitution DamagesRestitution prevents unjust enrichment by awarding the value of the benefit conferred.
• Reliance DamagesReliance damages compensate for expenditures reasonably made in reliance on the contract.
• Specific PerformanceSpecific performance is available when monetary damages are inadequate and the terms are sufficiently definite.
• Replevin (UCC)Buyers may recover identified goods wrongfully withheld if unable to cover.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.