liquidated damage

1 definition found

liquidated damage - Bouvier's Law Dictionary, Revised 6th Ed (1856) :

  LIQUIDATED DAMAGES. By this term is understood the fixed amount which a 
  party to an agreement promises to pay to the other, in case he shall not 
  fulfill some primary or principal engagement into which he has entered by the
  
  same agreement it differs from a penalty. (q.v.) Vide Damages liquidated. 
       2. The damages will be considered as liquidated in the following cases: 
  1. When the damages are uncertain, and not capable of being ascertained by 
  any satisfactory or known rule; whether the uncertainty lies in the nature 
  of the subject itself, or in the particular circumstances of the case. 2 T. 
  R. 32 1 Ale. & N. 389; 2 Burr. 2225 10 Ves. 429; 7 Cowen, 307; 4 Wend. 468. 
  2. When, from the nature of the case, and the tenor of the agreement, it is 
  clear, that the damages have been the subject of actual and fair calculation 
  and adjustment between the parties. 2 Greenl. Ev. Sec. 259; 2 Story, Eq. 
  Sec. 1318; 3 C. & P. 240; 10 Mass. 450, 462; 6 Bro. P. C. 436; 3 Taunt. 473; 
  7 John. 72; 4 Mass. 433; 3 Conn. 58; 1 Bouv. Inst. n. 655, 765.