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Prosecution Questions Liquidated Damages Provision In Agreement

Former U.S. President Donald Trump departs Trump Tower in New York

The prosecution is currently examining the liquidated damages provision outlined in the agreement, which specifies a penalty of $1 million per breach of contract. During the proceedings, Prosecutor Joshua Steinglass raised a question regarding the unusually high amount in comparison to the contract value.

In response, Keith Davidson expressed skepticism about the enforceability of such a provision, citing that it significantly exceeded the settlement amount of the contract. He noted that the demand for this provision, set at $1 million per breach, came from Cohen.

Prosecutor Joshua Steinglass questions high penalty compared to contract value.
Prosecution examining $1 million liquidated damages provision in contract.
Keith Davidson doubts enforceability of provision exceeding settlement amount.

Davidson's assertion brings attention to the potential legal implications of including such a substantial penalty in the agreement. The discussion sheds light on the intricacies of contract law and the importance of ensuring that contractual terms are reasonable and legally sound.

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