liquidated damages

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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 ?
Liquidated damage provisions are allowed in situations where the actual amount of damages which might result from a party's default would be difficult to calculate.
the acquired firm's partners sign the acquirer's partnership agreement, which typically contains non-nonservice, and liquidated damage provisions obligating a partner who leaves with clients to reimburse the firm for additional expenses taken on to service the acquired partner's clients.
Rebecca Marshall, Recent Development, Bootstrapping a Malice Requirement into ADEA Liquidated Damage Awards, 62 WASH.
Arkansas Courts have ruled that where a construction contract is substantially performed within the time limit, delay in completion of minor details which does not cause material damage to the project will not subject the builder to liquidated damages.
Liquidated damages provisions in leases: Property owners and managers should focus their attention on risks associated with improperly drafted late fee provisions in their leases.
She sued for a precise amount of liquidated damages.
Liquidated damage clauses may also be subject to attack.
In connection with cooperative apartments, most courts have upheld liquidated damage provisions measured by a contract down payment often percent.
In all cases, liquidated damages must be a reasonable approximation of the landlord's actual damages at the time landlord and tenant signed the lease.
The project's risk exposure is effectively limited to PSE&G's payment under the power purchase agreement (PPA), and Morgan Stanley's guarantee of Morgan Stanley Capital Group's (MSCG) payment of liquidated damages under the mirror PPA.
Reyes was also slapped with 22 counts of violating Section 3(g) of the graft law for signing on to allegedly disadvantageous contracts that do not provide for the payment of liquidated damages in case of project delays.
After a few years of contract performance, the Licensee defaulted in payment of its royalty obligations stipulated in the licence agreement and subsequently the Claimant filed a suit before the Economic Court of First Instance in Cairo ("the Court") demanding (i) recovery of the outstanding amounts due as royalties (estimated at around USD 4 million); and (ii) payment of liquidated damages worth approximately USD 2 million as damages for the breach of the copyright licensing contracts as agreed between the parties.