A. An agreement may provide for liquidated damages in an amount that is reasonable at the time the agreement is executed and in light of anticipated harm and difficulty of proving the amount of loss resulting from breach of the agreement by any party.

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Terms Used In New Mexico Statutes 24A-4-4

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.

B. A provision in an agreement fixing unreasonably large liquidated damages is void as a penalty.