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Liquidated damages are a common feature of software development contracts. They are a pre-determined amount of money that a client can claim from a software outsourcing company if the company fails to meet certain contractual obligations, such as delivering the software on time or within budget. When a client demands to pay the liquidated damages, it can be a stressful and challenging situation for the software outsourcing company. In this essay, we will explore the definition of liquidated damages, the responsibilities of the software outsourcing company to the contract, and how to survive after the client demands to pay the liquidated damages.