The amount of money established in a liquidated damages clause can be explicit or it can result from estimations depending on the size of the harm done. In the case of contractual breaches, there are normally pre-established sums of money that must be paid to the affected party. Nevertheless...
For starters, liquidated damages are not to be used as a coercive tool. Their purpose is to compensate the owner for real or perceived losses as a result of a project delay, not to punish the contractor. The amount per day must be agreed upon by both parties ahead of time, and ...
Liquidated damages are meant as a fair representation of losses in situations where actual damages are difficult to ascertain. In general, liquidated damages are designed to be fair, rather than punitive. Liquidated damages may be referred to in aspecific contract clauseto cover circumstances where a...
The idea behind liquidated damages goes back to Roman law where it was known as "litis aestimatio." Liquidated damages provisions are commonly used in construction, real estate, and employment contracts as they are effective ways to manage and mitigate risk. Examples of Liquidated Damages If a ...
Liquidated damages are money that is paid out in the event of a breach of contract. The purpose of liquidated damages is to...
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There are contractual terms with meanings that are unclear or unknown to non-attorneys, and those can have an impact on the damages and remedies available in the event of a contract breach. These terms include: Default. Liquidated damages. Special damages. Requirements of a Legally Enforceable ...
Liquidated Damages are predetermined compensation amounts for a breach, while Unliquidated Damages are unspecified and determined after the breach.
Liquidated Damages Can Create A Cap on What You Can RecoverDavidson, Shep