A commercial construction contract has a liquidated damages clause of $2,500 per day for late completion. Under Civil Code §1671(b), this clause is presumed:

Explanation

Civil Code §1671(b) makes a liquidated damages provision valid unless the party seeking to invalidate it establishes that it was unreasonable under the circumstances existing at the time the contract was made: the burden sits on the challenger and the measuring date is formation, not the day the delay happened. Requiring the sum to equal actual daily loss is the stricter treatment §1671(c)-(d) reserves for consumer contracts. Type-size requirements come from the home improvement statutes, not from §1671. And the CSLB does not approve or pre-clear contract terms.