Wednesday's NY Legal News Round Up
The Robing Room

Define That Term #138

Sunday's term was liquidated damages, which is defined as:

n. an amount of money agreed upon by both parties to a contract which one will pay to the other upon breaching (breaking or backing out of) the agreement or if a lawsuit arises due to the breach. Sometimes the liquidated damages are the amount of a deposit or a down payment, or are based on a formula (such as 10% of the contract amount). The non-defaulting party may obtain a judgment for the amount of liquidated damages, often based on a stipulation (clear statement) contained in the contract, unless the party who has breached the contract can make a strong showing that the amount of liquidated damages was so "unconscionable" (far too high under the circumstances) that it appears there was fraud, misunderstanding or basic unfairness. See also: contract damages.

No one guessed this time around.

Today's term is:

gravamen.

Good luck and no dictionaries, please.

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