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 ?
Certain provisions in these agreements (e.g., a "liquidated damages clause") quantify the economic remedy to the firm in the case of the breach of a nonsolicitation or nonservice provision--that is, a liquidated damages clause is an estimate, made by the parties at the time they enter into their agreement, of the extent of the injury that the firm will probably sustain as a result of a breach.
The required showing begins by taking up the U.C.C.'s liquidated damage rules, which are consistent with the account of contract embodied in the dual performance hypothesis.
Specifically, I recommend that we adopt and implement a model similar to the liquidated damages provision in the Age Discrimination in Employment Act (ADEA) (226) and Fair Labor Standards Act (FLSA) (227) as part of Title VII in place of the current system.
And the greater the liquidated damage amount, the less likely
Construction contracts may call for "liquidated damages" in the event of a delay in completion.
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. The damages were calculated pursuant to a formula in an agreement which covered the issues as to how compensation might be paid upon severance.
The COA pointed out that under the RIRR of RA 9184, contractors who fail to satisfactorily complete the work within the specified time in the contract despite the extension granted, shall pay the procuring entity for liquidated damages "equal to at least one tenth of one percent of the cost of the unperformed portion of the works for every day of delay." The COA said the 44 contracts totaling P12.245 billion have incurred significant period of delays in completion and yet no LDs were imposed against the erring contractors.
COA said it computed the liquidated damages for the ten contracts to P74.304 million as of December 31, 2018, adding that suppliers failed to deliver the purchased items for a period ranging from 71 to 557 days of delays.
The report recommends that 'liquidated damages' should be imposed on the contractor if he asks for extension as the required funds were provided to him against the project.
Sinai Center for Rehabilitation and Healthcare, a nursing and rehabilitation center in Newark, will pay $130,000 in back wages and an equal amount in liquidated damages to 174 employees to resolve violations of overtime and record keeping provisions of the Fair Labor Standards Act.Sinai Center for Rehabilitation and Healthcare, a nursing and rehabilitation center in Newark, will pay $130,000 in back wages and an equal amount in liquidated damages to 174 employees to resolve violations of overtime and record keeping provisions of the Fair Labor Standards Act.
After a home health care worker established that her employer failed to compensate her for overtime, the Eastern District of Virginia court found her entitled to unpaid overtime, liquidated damages and attorney's fees under FLSA.