On appeal the claimant argued that the contract includes a liquidated damages clause
which stipulates that in case of termination of the contract due to the defendant's breach, the claimant will be entitled to have all the due instalments up to the date of termination.
The DIFC law tests for the validity of liquidated damages clauses
- "manifestly disproportionate" and "grossly excessive" - suggest a high threshold test similar to the "extravagant and unconscionable" test employed under English law to determine the enforceability of liquidated damages clauses
While liquidated damages clauses
can be used to regulate various contractual breaches - such as the failure of a power station, constructed under a Design and Build, to meet specified target outputs for a particular period; or where agreed noise tolerances are exceeded in transport infrastructure contracts - they are most commonly used in the context of delayed completion of the whole works or, in a multi-phase project, to compensate for a contractor's failure to achieve sectional completion milestones.
According to copies of two employment contracts reviewed by Bloomberg, some Sinclair employees were subject to a liquidated damages clause
for leaving before the term of their agreement was up: one that requires they pay as much as 40 percent of their annual compensation to the company.
The liquidated damages clause
stipulated a breach by either party would cause irreparable harm, that monetary damages would not be an adequate remedy for such breach, and that the prevailing party in a breach of contract lawsuit would be entitled to court costs and attorney fees (Minnesota Vikings Football Stadium v.
Absent including a liquidated damages clause
as part of a vendor's terms, courts will be left to determine actual damages, which is often difficult, and can vary depending on the circumstances.
As a result, until recently UAE courts have consistently applied the rule that where the primary obligation is terminated, the liquidated damages clause
shall be disregarded as well.
You could even include a liquidated damages clause
, quantifying the loss that will be caused in the event that employees leave following a win without giving notice.
She has also worked on matters related to the enforcement of non-compete agreements, and represented a physician practice in a lawsuit to enforce the liquidated damages clause
in the departed employees' shareholder/employment agreements.
The contractor remains silent and pays" the engineer to bail him out for his non-compliance with the contract to preempt the invoking of liquidated damages clause
by the Engineer.
In California and Illinois, a liquidated damages clause
is valid unless it was unreasonable under the circumstances existing when the contract was made.