The aggrieved party may demand either the stipulated damages or performance of the principal obligation, but may not demand both except for delay.
Monetary compensation for a loss, detriment, or injury to a person or a person's rights or property, awarded by a court judgment or by a contract stipulation regarding breach of contract.
One reason for this is that the enforcement of the term would, in effect, require an equitable order of specific performance.
This largely mirrors the common law rule, which applies to other types of contracts under the law of most US states.
In Australia, the definition of liquidated damages applies to the situations where upon the failure of a primary stipulation, imposes a detriment to the first party or a benefit to the second party by a secondary stipulation collateral to the primary stipulation (i.e. UK bank and credit card customers were being charged as much as £39 for a single transaction that took them over their credit limit.
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