A demand (claim) for a fixed amount of money, such as an established debt of $1,000. A liquidated demand is exemplified by contract debts – claims under contract for the price of goods sold and delivered; for services rendered. This may also include claims for rent (in a contract of lease) and claims on promissory notes and for amounts due under bonds/ deeds, etc.
The amount of liquidated demand is usually determined based on a number of factors including: 1) the amount being arithmetically “ascertained” or “ascertainable” without further investigation, 2) the amount arises in a contractual setting- it is in reference to contract (where the parties to the contract must have mutually and unequivocally agreed on a fixed amount payable on breach), and 3) the agreed and fixed amount must be known prior to the breach.
Such a demand differs from a claim for unliquidated damages (unliquidated demand), which can be determined by a discretionary assessment of the court of law.
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