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.
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.
