| A: If the $1237 is found to be a penalty it likely isn't enforceable. If the $1237 is found to be liquidated damages, it likely is enforceable. Liquidated damages are recognized as a genuine pre-estimate of damages if a breach occurs. The amount is set out and agreed to at the beginning of the lease period, and establishes the recognized and agreed upon costs and expenses of advertising, re-renting expenses, etc.
If you don't agree or accept the amount set out in a liquidated damages clause, the time to object is before you sign the agreement - not after. |
