L is for Liquidated Damages
In this Instagram reel, I talk about liquidated damages.
Sounds intense, right? Well, it’s actually just a fancy legal way of agreeing in advance what a party’s damages are if the other party breaches their contract.
Example: A couple cancels their wedding a month out. The contract should clearly state that the vendor can collect the remaining balance of their fee as liquidated damages — a fair estimate of lost income — even though they haven’t performed their services on the wedding day.
It’s about clarity, not punishment. Everyone knows what to expect before something goes wrong. (Which is kinda the whole point of a good contract.)
