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The Collaborative International Dictionary of English v.0.48 (gcide)

Liquidate \Liq"ui*date\ (l[i^]k"w[i^]*d[=a]t), v. t. [imp. & p.
p. {Liquidated} (-d[=a]`t[e^]d); p. pr. & vb. n.
{Liquidating}.] [LL. liquidatus, p. p. of liquidare to
liquidate, fr. L. liquidus liquid, clear. See {Liquid}.]
1. (Law) To determine by agreement or by litigation the
precise amount of (indebtedness); or, where there is an
indebtedness to more than one person, to determine the
precise amount of (each indebtedness); to make the amount
of (an indebtedness) clear and certain.
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A debt or demand is liquidated whenever the amount
due is agreed on by the parties, or fixed by the
operation of law. --15 Ga. Rep.
321.
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If our epistolary accounts were fairly liquidated, I
believe you would be brought in considerable debtor.
--Chesterfield.
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2. In an extended sense: To ascertain the amount, or the
several amounts, of, and apply assets toward the discharge
of (an indebtedness). --Abbott.
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3. To discharge; to pay off or settle, as an indebtedness.
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Friburg was ceded to Zurich by Sigismund to
liquidate a debt of a thousand florins. --W. Coxe.
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4. To make clear and intelligible.
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Time only can liquidate the meaning of all parts of
a compound system. --A. Hamilton.
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5. To make liquid. [Obs.]
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6. To convert (assets) into cash.
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7. To kill; -- used mostly of governments or organizations
killing their enemies; as, Stalin liquidated many of the
Kulaks.
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8. To dissolve (an organization); to terminate (an activity).
[PJC]

{Liquidated damages} (Law), damages the amount of which is
fixed or ascertained. --Abbott.
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