liquidated damages

(redirected from Liquidated Damage)
Also found in: Dictionary, Legal, Financial, Wikipedia.

liquidated damages

A sum specified in a contract whereby damages in the event of breach are to be determined. In a construction contract, liquidated damages usually are specified as a fixed sum per day for failure to complete the work, 1 within a specified time. If set at a level consistent with a reasonable forecast of actual harm to the owner, liquidated damage clauses will be upheld and will preclude use of standards for computation of damages that would otherwise be imposed by law. If the amount prescribed for liquidated damages is unreasonably high, the provision will be denominated an illegal “penalty” by the courts and held invalid; in such case, damages will be determined pursuant to otherwise applicable rules of law.
References in periodicals archive ?
Therefore, liquidated damages should be a reasonable estimate of actual damages.
The second and perhaps bigger problem was that the lease stated that in addition to the liquidated damage deposit, the tenant was also liable for all other damages including all unpaid rent and attorneys' fees.
While some other areas of the law allow for arbitrarily assigning dollar figures to unquantifiable events, automobile accidents, for example, liquidated damages doctrine insists that there be some nexus between the agreed upon damages and the foreseeable loss.
It should be pointed out that liquidated damages, are not solely reflective of what the parties genuinely believe the loss might be.
This article reviews the application of a liquidated damages clause to an employment restrictive covenant agreement and emphasizes how practitioners can draft enforceable clauses for their business clients' protection.
Schleier(1)(*) that section 104(a)(2) of the Internal Revenue Code(2) does not authorize a former United Airlines pilot to exclude from his gross income the amount received in settlement of a claim for back pay and liquidated damages under the Age Discrimination in Employment Act of 1967.
Decision Addresses Enforceability of Liquidated Damages Provision
Late penalty The contractor was at fault contracting authority is entitled to liquidated damages for late settlement.
The client does not expressly mention it to the contractor but it does not deduct the liquidated damages as they fall due.
Instead of using a liquidated damages provision, the buyer and sellers merely agreed in the purchase contract that the deposit would be "nonrefundable.
B asserted his claim under the SHRA and the ADEA; the latter allows for the recovery of back pay, front pay, liquidated damages and attorneys' fees.
They were unhappy with the liquidated damages,'' Long said.