A pre-determined amount that will be paid out based on certain damages, as defined within a contract. Both parties agree on a set compensation for certain damages that will be paid out if the contract is breached or if other damages are undertaken.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser