liquidated damages vs. consequential damages
consequential damages are when money is lost as an indirect result of something.
liquidated damages are when there is a set amount of money determined when the contract is signed becuase it may be hard to know how much money was lost.
ex the jewlery store:suppose John agrees to lease a store-front to Mary, from which Mary intends to sell jewellery. If John breaches the contract by refusing to lease the store-front at the appointed time, it will be difficult to determine what profits Mary will have lost because the success of newly created small businesses is highly uncertain. This, therefore, would be an appropriate circumstance for Mary to insist upon a liquidated damages clause in case John fails to perform.