Final answer:
Liquidated damages clauses are enforced when actual damages are difficult to determine, providing certainty and avoiding disputes over the amount of damages that should be awarded.
Step-by-step explanation:
Generally, liquidated damage clauses are enforced when actual damages are difficult to determine. A liquidated damage clause is a provision in a contract that specifies the amount of money that one party will pay to the other party if there is a breach of the contract. This clause helps to provide certainty and avoid disputes over the amount of damages that should be awarded. For example, in construction contracts where delays can be costly but difficult to quantify, a liquidated damage clause may be included to establish a predetermined amount of damages that the contractor will pay if the project is not completed on time.