Liquidated Damages
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Statutes
Damages for breach by either party may be liquidated in the agreement but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the breach, the difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an adequate remedy. A term fixing unreasonably large liquidated damages is void as a penalty. (West's F.S.A. § 672.718)
Cases
RKR Motors, Inc. v. Associated Unif. Rental & Linen Supply, Inc., 995 So.2d 588 (Fla. 3d DCA 2008) (finding that actual lost profits from breach of contract is disproportionate to the liquidated damages amount and therefore unconscionable to impose liquidated damages)
Comments
There is an issue if the damages provision is really disguised as a penalty provision.
Contributors
Brittany S. Ogden
The statutory information was edited and reviewed with the support of MultiState
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