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.
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.
References in periodicals archive ?
It asked the PTNI management to 'strictly comply' with the rule on the imposition of liquidated damages, and rescind contracts where the damages have already exceeded 10 percent of the contract.
Although, there seems to be some dissatisfaction on the part of the appellant as to the quantum of amount of liquidated damages, but neither any relevant period as to the entitlement of the appellant to receive such liquidated damages nor any other amount, were provided by the appellant.
Our opinion is that any demurrage, beyond the two additional periods, should be considered a claim for liquidated damages. The reason for such proposition is twofold:
Any attorney drafting contracts on a regular basis knows two different client goals for liquidated damages clauses.
In California and Illinois, a liquidated damages clause is valid unless it was unreasonable under the circumstances existing when the contract was made.
Whatever is left in this fund will be allocated according to the same formula as the provision related to liquidated damages.
It is further argued that this Court vide order dated18-4-2006 has allowed the liquidated damages from 22-6-2000 till the payment; as such the liquidated damages were to be calculated from the said date till the payment of the liquidated damages and the learned Insurance Tribunal did not comprehend the same and unjustly and unlawfully dismissed the application of the appellant.
These provisions, unfortunately sometimes referred to as "boilerplate," include remedies restrictions, liquidated damages, warranty disclaimers and limitations on liability.
Bases resulting in zero valued payment certificates include a minimum sum to be due before payment is required and the ability to set-off accrued liquidated damages against payments falling due resulting in the payment being extinguished.
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.
Dept of Labor announced it has secured a consent judgment ordering two Sabana Grande farmers to pay $275,000 in back wages and liquidated damages to 174 agricultural workers, reports News Is My Business (July 30, 2013).
A contract's price term is thus an implied-in-fact liquidated damages clause that establishes the liquidated amount as an alternative performance.