A preset amount owed if someone breaches — agreed in advance.
Liquidated damages are a fixed sum the parties agree, when signing, that one will pay the other if they break the contract. Courts enforce them only if the amount is a reasonable estimate of actual harm — not a penalty. An inflated liquidated-damages figure may be unenforceable.
A lease late fee that’s really a liquidated-damages clause; if it’s far above the landlord’s actual cost, it may be void.
Main AI reads your actual contract, lease, or notice and flags exactly where terms like these put you at risk — in plain language, with the law behind it.
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