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Are liquidated damages the same as Punitive damages?

Answer:

No. Punitive damages are strictly that--punitive, designed to punish and make an example of the defendant to deter future similar bad conduct. Conversely, liquidated damages are set damages (i.e. per day, hour, whatever increment of time) as a penalty for non-performance. Perfect example would be a contractor who promises to finish building a house by January 30th and the contract says for each day past January 30th, the homeowner shall be entitled to liquidated damages in the amount of $100.

First answer by ID1262245995. Last edit by ID1262245995. Question popularity: 2 [recommend question].

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