Cash compensation , agreed to by signed, written contract for breach of contract , payable to the aggrieved party . The contract succinctly specifies what actions, or omissions, constitute a breach. To be legally enforceable , the contract’s nature makes damages circumstantially reasonable and difficult to determine. Otherwise, a court could interpret the specified amount as a fine, being in the contract primarily to force proper performance , and not to compensate injury. Under these conditions, the court views damages as ‘ unliquidated ‘ to be assigned by the court based on the case’s merits alone.
Black’s Law Online Dictionary
