Liquidating damages clause dating selfish women
The Court found that the liquidated damages sum was a penalty because it did not compensate the developer for the relevant breach (ie.delay) as the delay was incapable of causing any relevant financial loss.If you, too, delayed the completion of the project or otherwise breached the contract, the court will consider your conduct when evaluating the merits of applying the provision.This information is provided for informational purposes only and does not constitute legal advice.Liquidated damages clauses allow a principal to charge monies at an agreed daily or weekly rate if a contractor fails to achieve practical completion of the works by the date provided for in the contract. These clauses are imperative to principals as they provide both: The principal does not need to show that it has suffered any loss as a result of the delay.
When considering whether to award liquidated damages, the court found that these factors supported the liquidated damages amount.The contract stated that the liquidated damages rate increased incrementally based on the length of the delay.The Court determined that the liquidated damages clause was not a penalty.For example, the pre-set liquidated damages amount must be a estimation of the damages that would occur in the event of a breach.If the stipulated amount is not reasonably related to the potential damages, then it will be considered a penalty, and it will be unenforceable. Even if both parties agree to include the clause in their contract, it may not be enforceable.
There are a few reasons that come to mind: It pays to be careful when drafting a liquidated damages clause.