Question: Louis leased a building to Pam for five years at a rental of $1,000 per month; Pam deposited $10,000 as security for performance of all her promises in the lease, which was to be retained by Lois in case of any breach on Pamâ??s part. Pam defaulted in the payment of rent for the last two months of the lease. Lois refused to return any of the deposit, claiming it as liquidated damages. Pam sued Louis to recover $8,000 (the $10,000 deposit less the amount of rent due Louis for two months) What amount of damages should Pam be allowed to collect from Louis? Explain.