Which type of damages is specifically predetermined in a contract?

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Liquidated damages are a specific type of damages that are predetermined in a contract. They are established at the time the contract is formed and specify the amount of compensation that will be due if a party fails to meet certain obligations outlined in the contract. This is particularly useful in scenarios where actual damages might be difficult to quantify at the time of a breach, as it provides clarity and certainty for both parties regarding the repercussions of non-performance.

In contrast, actual damages refer to compensation for proven losses that arise directly from a breach, but these are evaluated after the fact and can vary in amount. Implied damages do not have a standard meaning in this context, as they often refer to damages that might be inferred by law but are not explicitly outlined in the contract. General damages, similarly, are compensation for losses that are a direct consequence of a breach but are not predetermined or specified within the contractual agreement.

Therefore, the specificity and predetermined nature of liquidated damages make them the correct choice in this context, as they establish clear expectations for performance and the consequences of failure to perform.

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