Liquidating damages clause
Likewise, a court will not award liquidated damages if the contract is based on fraud or mistake.If a court determines that such a clause is unenforceable, the clause is void, and the non-breaching party may sue for other contract remedies.In the absence of the Liquidated Damages clause, the seller would have to prove the amount of costs incurred when the buyer breached.This legal dispute would be costly for both buyer and seller."Financing agency" includes also a bank or other person who similarly intervenes between persons who are in the position of seller and buyer in respect to the goods under section 1302.81 of the Revised Code.
A liquidated damages clause sounds like it can be a penalty for a breach of contract, but it is not intended to be.
A penalty is meant to be a punishment in case of a breach.
On the other hand, liquidated damages are intended to serve as a protection for both parties who have entered the contract in case there was some type of breach.
Goods must be both existing and identified before any interest in them can pass.
Goods which are not both existing and identified are "Future" goods.