Is "damage" a prerequisite for claiming liquidated damages?



Answers:
As a liquidated damages clause is often an estimate of damage that results for breach of a particular term there will probably be damage.

Even if there was no actual damage it is enough that the liquidated damages clause was a genuine pre-estimate. However if breaches of a particular term will generally not result in any sort of damage it is hard to see how it is a genuine estimate. If a plaintiff can show that it is excessive, then a court will hold a liquidated damages clause void, since it constitutes a penalty and is unenforceable.

No. A "liquidated damage" clause in a contract means that the parties agree that this is the penalty for a breach, regardless of whether there are any actual damages. State laws might limit the exercise of this clause, if it is excessive or inadequately low, it might be deemed void.

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