Problem
John and Mark have an agreement to purchase fruit from a California orchard, and sell it to buyers across the northwest. After he and Mark have accepted numerous orders for the delivery of fruit, John decides he doesn't want to be a part of the business after all.
Mark spends $8,000 fulfilling the obligations that he and John mutually accepted.
John and Mark had stipulated in their contract either liquidated damages or limitation damages of $10,000.
Has John effectively breached his contract with Mark?
If so, how much will John be liable for in damages under each provision (liquidated / limitation)?