Liquidated/Delay Damages

Question 1

What are Liquidated Damages? (LD)

Answer 1

The amount for damages WAS pre-agreed by parties to a contract. if the terms in a contract are broken, the damages are already stated.

Question 2

What are Unliquidated Damages?

Answer 2

The amount for damages WAS NOT pre-agreed by parties to a contract. if the terms in a contract are broken, the damages are decided by the court.

Question 3

What are penalties?

Answer 3

Designed to deter parties from breaching a contract.
They are not enforceable by law
A contractor may challenge LD and say it is a penalty