liquidated damages

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Related to Unliquidated damages: unliquidated claim

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 ?
Claims for debts, and claims for specific sums by way of compensatory damages (known as liquidated damages) are in many instances to be contrasted to claims for compensatory unliquidated damages, where an English court will still sometimes (and, with some types of claim, always) make its assessment in sterling.
As we explained in Argonaut, "The distinction between liquidated and unliquidated damages is closely linked to [the now obsolete] 'penalty theory' of prejudgment interest." Argonaut, 474 So.2d at 215.
is not sufficient to diminish the amount in controversy and to oust the court of jurisdiction, even if that defense appears on the face of the complaint." (62) Courts following the minority approach also apply the "legal certainty" test liberally when encountering a case for unliquidated damages. (63) These courts, however, will still dismiss a cause of action for lack of jurisdiction if, during the course of the litigation, it becomes readily apparent that the plaintiff s claim could not have exceeded the threshold.
The court concluded that a default generally terminates the parties' right to further defend, except to contest unliquidated damages. Although neither party raised the issue of the effect of the default, the court concluded that the trial court correctly entered summary judgment against MEHC on the issue of liability and liquidated damages but not on unliquidated damages.
It would seem unjust that the question whether a person is entitled to have the company restored to the register for the purpose of recovering a judgment against them should be determined by whether their claim against the company is for a liquidated sum - in which case they would unarguably be a 'creditor' - or takes the form of a claim for unliquidated damages." [N/A]