Recent criticisms of California's liquidated damages law prompted the California Legislature to substantially rewrite the law in this area. The new law was passed in 1977 and became effective in July of 1978. A presumption of validity for more liquidated damages clauses replaces a century-old presumption of invalidity. This Comment examines the rationale behind the new law, discusses relevant portions of the enactment, and analyzes any ambiguities which my still exist.
Michael J. Mais & Paul B. Martins,
Title 4.5: California Liquidated Damages,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol16/iss5/8