Liquidated damages are set to an amount the parties designate during the formation of acontract for an injured partyto collect as compensation upon a specific breach of the agreement.
In order to have a completed contract, one party has to make an offer, the other has to accept (on the same terms proposed by the offer) and there must be consideration (the money actually changing hands would have been consideration).
The ABC process begins when a debtor company signs acontract assigning its assets toa third-party assignee (like Sherwood), which acts as a fiduciary for the company's creditors.
Under the mitigation of damages doctrine, aparty that suffers damages as a result of a breach of contract has a legal duty to mitigate those damages by taking reasonable action, wherever practicable, to avoid additional injury and minimize its loss.
The corporation then signs a long-term contractto buy the solar electric power from the third party at rates that are almost always less than what it would pay its traditional utility.
Like any other third party practice the SAP division holds a maintenance contract on behalf of customers in which it is allowed to maintain the software of a rival like PeopleSoft.