\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.
         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.
         If our epistolary accounts were fairly liquidated, I
         believe you would be brought in considerable debtor.
                                               --Chesterfield.
2. In an extended sense: To ascertain the amount, or the
   several amounts, of, and apply assets toward the discharge
   of (an indebtedness). --Abbott.
3. To discharge; to pay off, as an indebtedness.
         Friburg was ceded to Zurich by Sigismund to
         liquidate a debt of a thousand florins. --W. Coxe.
4. To make clear and intelligible.
         Time only can liquidate the meaning of all parts of
         a compound system.                    --A. Hamilton.
5. To make liquid. [Obs.]
{Liquidated damages} (Law), damages the amount of which is
   fixed or ascertained. --Abbott.