For claiming damages arising from breach, to bring certainty, the simplest would be to state the amount to be paid in damages for a breach. A stated amount of damages is called liquidated damages. However, if this were allowed, the stronger party would stipulate any amount to penalise the other or profit from it. But the general principle is that damages are to cover losses not to penalise the other or to profit from. For this reason, the courts award liquidated damages only if it appears to be a genuine pre-estimate of the losses. The liquidated damages clause is commonly used for delays in performance of contractual duties. The chapter explores the scope of liquidated damages clauses and its working with non-liquidated damages clauses.