Are Liquidated Damages Clauses Enforceable In Georgia ?

In Georgia, "if the parties agree in their contract what the damages for a breach shall be, they are said to be liquidated and, unless the agreement violates some principle of law, the parties are bound thereby." Turner v. Atlanta Girls' School, 288 Ga. App. 115, 116 (653 SE2d 380) (2007). The Court will enforce a liquidated damages clause if: (1) the injury caused by the breach is difficult or impossible to estimate accurately; (2) the parties intended to provide for damages rather than a penalty; (3) the stipulated sum is a reasonable estimate of the probable loss. The burden is on the party who defaults on the contract - in this case Antonios - to prove that a liquidated damages clause is unenforceable.