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4.5-10 Damages - Liquidated
Revised to January 1, 2008
The plaintiff claims that
the contract entitles (him/her/it) to liquidated damages. The
contract provides <insert liquidated damages clause>. The
plaintiff claims that that clause means <insert plaintiff's
contention>. The defendant claims that that clause means <insert
defendant's contention>. You should interpret what the parties
meant by that clause in accordance with the instructions I gave you
earlier on contract interpretation. <See Instructions
4.2-1 through
4.2-12.>
You should award the
plaintiff liquidated damages if you find that these three conditions
are met: 1) the damages that were to be expected as a result of a
breach was of an uncertain amount or difficult to prove; 2) the
parties intended to specify in the contract a certain liquidated sum
to be awarded as damages; and 3) that certain sum specified in the
contract was reasonable. You may not award liquidated damages
together with actual damages.
Authority
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