Z-Mart and A-1 Construction Company (A-1) agree to a liquidated damages clause of a certain amount on a per diem basis. In such cases, the parties are agreeing in advance that:
should breach occur, only remedies at law will be available.
upon breach, a certain amount of money will be paid to the injured party.
either party may resecind the contract at will.
defendant, if proven at fault, must liquidate all assets in order to grant plaintiff restitution.