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liquidated damages
(redirected from Liquidated damages clause)

    Also found in: Dictionary/thesaurus, Legal, Financial, Wikipedia 0.01 sec.
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.
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On further appeal to the House of Lords, the Court concluded that it was a liquidated damages clause rather than a penalty clause.
Penalty clauses in Canadian contract law by Veel, Paul-Erik / University of Toronto Faculty of Law Review
The Seller should sign a CNC with no allocation of any portion of the sale price to the CNC, side by side with a liquidated damages clause that will impose an agreed upon amount of liquidated damages in the event the Seller breaches the CNC.
Strategies to Reduce Taxes in the Sale of A Business ? Covenant not ... by Dynamic Business Brokers Inc. / Business community
Given that the catch-22 turns in part on the promisee's ability to prove actual loss, it is natural to ask whether a liquidated damages clause cannot resolve it.
Contracting for cooperation in recovery by Klass, Gregory / Yale Law Journal
 
 
 
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