Question

(Keep the response as short as possible please)

What is a liquidated damages clause in a contract?

    a) Is it a good thing?
    b) Why might the clause not be enforced by the courts?


What is specific performance?

In which situation would specific performance more likely be granted...sale of land contract or personal services contract? Why?

Answer 1

A liquidated damages clause specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract. The amount of the liquidated damages is supposed to be the parties' best estimate at the time they sign the contract of the damages that would be caused by a breach. For parties , it can be good as -A liquidated damages clause can be a useful way to limit risk but they are not always enforceable. ... The amount of the liquidated damages is supposed to be the parties' best estimate at the time they sign the contract of the damagesthat would be caused by a breach.     Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such to to complete performance of the contract. ... Specific performance is commonly used in the form of injunctive reliefconcerning confidential information or real property. Specific performance must granted in case of Sale of Land because It is typically available in the sale of land, but otherwise is not generally available if damages are an appropriate alternative. Specific performance is almost never available for contracts of personal service, although performance may also be ensured through the threat of proceedings for contempt of court.