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Message: [QUOTE="visitingcock, post: 5295852, member: 6872"] If the amount exceeds the contract price, it smells of penalty because liquidated damages must be a reasonable approximation of foreseeable damages to the non -breaching party but they cannot simply be a penalty. You resort to old common law - which Is more relevant than most would suspect. That shows how tough the field of study can be. University lawyers are good and won’t allow their client to use an easily beaten adhesion agreement signed by an 18 year old. It will be tough but I’m sure they can come up with something that will work. But it won’t be a simple penalty clause. That is why I raise the issue to point out that a simple boilerplate penalty clause is not good enough. Hadley v Baxendal gives me headaches too. [/QUOTE]