Sun Lodge (Lodge) (defendant) leased two advertisement signs from Gary Outdoor Advertising Co. (Outdoor) (plaintiff). Each lease was for a 36-month term with monthly payments. Throughout the leases, Outdoor was responsible for maintaining the signs and paying taxes and insurance on them. The lease agreements included a term stating that if Lodge missed two monthly payments, then Outdoor could take back the signs and compel Lodge to immediately pay all the monthly payments remaining under the leases. Lodge’s payment of the remaining rents was identified as liquidated damages. Lodge in fact did miss two monthly payments, and Outdoor sued to recover the roughly 30 months of rent remaining under each contract. However, Outdoor also rented one of the signs to a new tenant a month after Lodge’s breach, and Outdoor then sold both signs six months after that. The trial court ruled in favor of Lodge on the basis that the liquidated-damages provision was in fact a penalty for breach. Outdoor appealed.