1 In bankruptcy or insolvency, to terminate a business by the sale of its assets to pay its liabilities. 2 To pay a debt. 3 To convert hard assets into cash. 4To set, by contract or stipulation, a fixed amount for damages resulting from a particular harm. n.To liquidated amount set by agreement a specific amount or a formula for calculating such an amount, in compensation for the losses resulting from a breach. liquidated damages See damages