There are multiple definitions - click on the translation that matches your context.

indenização fixada na cláusula penal

substantivo

full

liquidated damages

noun

Definitions of liquidated damages

English

compensation that is agreed to in a contract and that will be paid to the non-breaching party in the event of a breach

If the contractor fails to perform, the redress for any overrun in time is the application of liquidated damages.