New Vlog Entry from Howard Koh: Liquidated Damages vs. Penalties

In his latest short vlog, Howard Koh dives into an important issue that often arises during contract drafting and litigation: liquidated damages versus penalties.

What’s the difference? Liquidated damages clauses allow the non-breaching party to recover a specific, negotiated amount in case of a breach. However, if this amount is not reasonably related to the prospective loss, a court may rule it as a penalty – meaning it won’t be enforced.

Watch Howard’s vlog to learn more about navigating this critical distinction and how it can impact your agreements.