Answer:

The fair and genuine pre-estimated sum of damages likely to result due to a breach of contract is termed as Liquidated Damages. This concept is widely used in contract law to provide a reasonable estimate of damages that may occur in the event of a breach, especially when it is difficult to ascertain the actual loss suffered by the aggrieved party.

Explanation:

1. Liquidated Damages:
Liquidated damages are a specific amount of money agreed upon by the parties to a contract, which will be paid as compensation in the event of a breach. These damages are typically specified in the contract itself, either as a fixed amount or as a formula for calculation.

2. Purpose of Liquidated Damages:
The purpose of including liquidated damages in a contract is to provide certainty and avoid the need for lengthy and costly litigation to determine the actual damages suffered by the non-breaching party. It allows the parties to agree on a reasonable estimate of damages in advance, based on their understanding of the potential harm caused by a breach.

3. Enforceability:
In order for liquidated damages to be enforceable, certain conditions must be met. These include:

- The damages must be difficult to ascertain at the time of contract formation.
- The amount must be a reasonable estimate of the anticipated damages.
- The damages must not be excessive or punitive in nature.
- The liquidated damages clause must be a genuine pre-estimate of loss and not a penalty.

4. Difference between Liquidated Damages and Penalty:
The key difference between liquidated damages and a penalty is that a penalty is designed to punish the breaching party, while liquidated damages are intended to compensate the non-breaching party for the actual loss suffered. If a provision in a contract is found to be a penalty, it will not be enforceable.

Conclusion:
In conclusion, a fair and genuine pre-estimated sum of damages likely to result due to a breach of contract is termed as liquidated damages. It provides a reasonable estimate of damages in advance, based on the understanding of the potential harm caused by a breach. However, it is important to ensure that the liquidated damages clause meets the necessary conditions for enforceability and is not considered a penalty.