Liquidated Damages
Liquidated damages are a contractually specified amount of damages payable upon a defined breach, intended to provide a predictable remedy where actual damages may be difficult to measure. In real estate sale contracts, liquidated damages concepts are often tied to deposit retention provisions (subject to contract drafting and enforceability constraints).
- Where it applies
- Generally, not specific to New York
- When it comes up
- Contract; default remedies
- Property types
- Sales contracts; some leases
Read more in the Knowledge Base
Risk and Liability Terminology
- Closing Protection Letter (CPL)
- Closing Wire Fraud / Business Email Compromise (BEC)
- Deed Fraud
- Directors and Officers (D&O) Insurance
- Errors & Omissions (E&O) Insurance
- Force Majeure
- Indemnification
- Limitation of Liability
- Notice of Recorded Document (NRD) Monitoring
- Recording Gap Risk
General information, not legal, tax or financial advice.