Liquidated Damages Clause OK Despite Not Listing Specific Amount

What Happened: A medical lab claimed that the provision in its lease providing for liquidated damages of “net present value of the entire balance of rent due herein as of the date of [landlord’s] notice, using the published prime rate then in effect” was too open-ended to be enforceable. But the Massachusetts court disagreed and ordered the lab to pay the landlord $1.854 million in liquidated damages for defaulting on the lease. The tenant appealed.

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