for a liquidated damage to be enforceable, it must not be unreasonable compared to actual damage, and actual damage must be unforeseenable at time of contract. if liquidated damage is upheld, it will preclude other contractual damages. for example, if the renters sign a 12 month lease must break the lease within a day, then liquidated damage is all you can recover. contractual damage on the other hand, will give you 12 month worth of rent, subject to mitigation of course.
a liquidated damage is not ticket to break the lease. the landlord can still go after the renters for specific performance, an equitable remedy.
either way, if the renters breach, you cannot avoid a lawsuit. you still need to go to court to prove a contract, a breach, and damage.
personally, I do not think liquidated damage in a term lease will be enforceable since the damage is not uncertain upon a renters breach.
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