liquidated damages


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Related to liquidated damages: Unliquidated damages

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 ?
For owners, the Hunts Point decision acknowledges and confirms the legitimacy of the powerful liquidated damages remedy, while at the same time prescribing boundaries for this remedy (i.
There is no clear statement in the law about just how proportionate the liquidated damages must be, but the standard appears to be that the clause is "reasonably proportionate" stated affirmatively or not "plainly disproportionate," stated negatively.
Liquidated damage clauses should be negotiated between the parties.
In the Court's view, Schleier's damages under the ADEA are not based upon "tort or tort type rights' because monetary remedies under the ADEA are limited to backpay and liquidated damages, neither of which serves a compensatory function.
The vessel sales agreement also provided that liquidated damages would be assessed per occurrence if the non-compete clause was breached.
s Residential Purchase Agreement, the sellers would have been entitled to the escrow deposit (not to exceed three percent of the purchase price), if the parties initialed the liquidated damages provision, and the buyer had no contingencies or had removed all his contingencies.
In connection with cooperative apartments, most courts have upheld liquidated damage provisions measured by a contract down payment often percent.
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.
The firm sued Christian for liquidated damages in accordance with the contract and Christian cross-complained for breach of contract.
These are the damages which are the so-called "difficult or impossible damages to determine" for which the remedy of liquidated damages is particularly suited.