Liquidated Damages Provisions in Illinois: Specific Amount for Specific Breach = Good; Optional or Penalty = Bad

Liquidated damages clauses appear frequently in a variety of commercial contracts and similar agreements. Several Illinois cases – some old and some very recent – examine liquidated damages clauses in multiple factual settings. Here are some bullet-point liquidated damages rules, gleaned from the caselaw: – Liquidated damages clauses are enforceable where:  (1) the parties intended …