Liquidating damages clause novascotia dating

Posted by / 14-Aug-2017 16:15

The clause setting this

The clause setting this $1,000 payment penalty is a liquidated damage clause, with the $1,000 being the "liquidated" damages that will have to be paid.Liquidated damages provisions are not used in every contract, but they may make sense in certain instances.Under these circumstances, the client would still be able to pursue a claim for breach of contract.

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The clause setting this $1,000 payment penalty is a liquidated damage clause, with the $1,000 being the "liquidated" damages that will have to be paid.

Liquidated damages provisions are not used in every contract, but they may make sense in certain instances.

Under these circumstances, the client would still be able to pursue a claim for breach of contract.

If the project is delayed by an event that impacts on the completion date, but is not the fault of the contractor, then this may constitute a 'relevant event' for which the contractor may be granted an extension of time (ie the completion date in the contract is adjusted), and the contractor may be able to make a claim for loss and expense.

Example: Gerald has agreed to purchase Reta’s home for $50,000.

As part of the agreement, he must put down a deposit of $5,000.

However, courts will usually only enforce a liquidated damages clause if the damages really are difficult to determine and if the clause is reasonable (i.e.

not punitive—you can't put a clause in a contract specifying $1,000,000 in liquidated damages if you really only lose about $100).

,000 payment penalty is a liquidated damage clause, with the

The clause setting this $1,000 payment penalty is a liquidated damage clause, with the $1,000 being the "liquidated" damages that will have to be paid.Liquidated damages provisions are not used in every contract, but they may make sense in certain instances.Under these circumstances, the client would still be able to pursue a claim for breach of contract.

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The clause setting this $1,000 payment penalty is a liquidated damage clause, with the $1,000 being the "liquidated" damages that will have to be paid.

Liquidated damages provisions are not used in every contract, but they may make sense in certain instances.

Under these circumstances, the client would still be able to pursue a claim for breach of contract.

If the project is delayed by an event that impacts on the completion date, but is not the fault of the contractor, then this may constitute a 'relevant event' for which the contractor may be granted an extension of time (ie the completion date in the contract is adjusted), and the contractor may be able to make a claim for loss and expense.

Example: Gerald has agreed to purchase Reta’s home for $50,000.

As part of the agreement, he must put down a deposit of $5,000.

However, courts will usually only enforce a liquidated damages clause if the damages really are difficult to determine and if the clause is reasonable (i.e.

not punitive—you can't put a clause in a contract specifying $1,000,000 in liquidated damages if you really only lose about $100).

,000 being the "liquidated" damages that will have to be paid.Liquidated damages provisions are not used in every contract, but they may make sense in certain instances.Under these circumstances, the client would still be able to pursue a claim for breach of contract.

If they are not genuine, they may be considered a penalty by the courts and so will be unenforceable (see Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd).

It is important that the method of calculation is formally documented.

If the contract prevents the client claiming liquidated damages, or if actual losses are significantly different to those that were estimated at the time the contract was entered into, then the client may pursue a claim for unliquidated (i.e. This would require them to prove that an actual loss had been incurred and that loss was not too 'remote'.

Liquidated damages clauses act as insurance for both parties.

The person who breaks the contract knows ahead of time how much they would owe the other party.

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If you are writing a contract with a liquidated damages provision, or considering signing one, getting a lawyer involved is a good idea to help make sure your legal rights are protected.

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