Contracts
What is a 'liquidated damages clause' and what makes it enforceable in Idaho?
AAny clause that mentions money damages
BA clause specifying a pre-agreed damage amount that is reasonable and reflects a genuine estimate of actual damages when actual damages would be difficult to calculate✓ Correct
CA clause requiring court approval for any damages
DA clause limiting damages to the earnest money amount always
Explanation
A liquidated damages clause is enforceable in Idaho when: (1) actual damages would be difficult to estimate at the time of contracting, and (2) the specified amount is a reasonable pre-estimate of actual damages, not a penalty.
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