3 ms·
https://en.wikipedia.org/wiki/Liquidated_damages https://en.wikipedia.org/wiki/Liquidated_damages "Under the common law, liquidated damages may not be set so h
by lozenge 4y ago
https://en.wikipedia.org/wiki/Liquidated_damages https://en.wikipedia.org/wiki/Liquidated_damages
"Under the common law, liquidated damages may not be set so high that they are penalty clauses rather than fair compensation... Generally, at common law, a liquidated damages clause will not be enforced if its purpose is to punish the party in breach rather than to compensate the injured party"
If Tile provides information to the police to help catch a stalker, they can't claim their reputational damage is $1m. Actually, even their statements in this thread show that it's intended as a punishment.