28-2-721. When provision fixing liquidated damages valid.
95 words·~1 min read·
/mt/title-28/chapter-2/part-7/28-2-721·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
28-2-721 . When provision fixing liquidated damages valid.
(1)Every contract by which the amount of damage to be paid or other compensation to be made for a breach of an obligation is determined in anticipation thereof is to that extent void, except as expressly provided in subsection (2).
(2)The parties to a contract may agree therein upon an amount which shall be presumed to be an amount of damage sustained by a breach thereof when, from the nature of the case, it would be impracticable or extremely difficult to fix the actual damage.