liquidated damages

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Liquidated damages

The amount payable for delays and sub-standard performance under a construction, equipment supply, or Operations & Maintenance contract.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Liquidated Damages

In some contracts, a set fee that one party must pay the other in cases of breach of contract. The amount of the liquidated damages is stated in the contract and is designed to compensate the grieved party when valuation of the breach would be difficult to ascertain.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

liquidated damages

Damages agreed upon in advance by contracting parties.The parties will recite that if one or the other breaches the contract, it will be difficult to determine damages at that time.This is often true in situations where construction is delayed and a business cannot open on time or homeowners cannot take possession of their home when anticipated. Liquidated damages are used in a wide variety of cases, though, not just construction contracts.The parties will agree to an amount of damages, or a method of calculating damages, such as a certain amount per day. Most real estate sale contracts stipulate the earnest money deposit as the amount of liquidated damages.The catch with this system is that courts will not enforce penalties, which are illegal.If the liquidated damages do not bear some relationship to reality and the probable damages suffered by the innocent party, then courts will recharacterize them as penalties (completely unenforceable) or will reduce them to an amount deemed reasonable under the circumstances.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The liquidated damages amount is often calculated as a percentage of the firm's historical annual billings to such lost clients for the year preceding the partner's departure, and it is triggered if the departing partner or the firm services the clients taken during the two-year period after the partner leaves the firm.
The U.C.C.'s treatment of liquidated damage provisions is neither a narrow technicality nor an outlier (that is, a departure from the common law).
Under my proposal, liquidated damages in the amount of double the actual damages would replace punitive damages in Title VII.
the possibility that liquidated damages are a solution.
Therefore, liquidated damages should be a reasonable estimate of actual damages.
For the foregoing reasons, the undersigned recommends judgment in favor of plaintiff and against Kare in the amount of $58,900.38, representing $29,450.19 for unpaid wages and an equal amount in liquidated damages; and judgment in favor of plaintiff and against Kare in the amount of $11,986.15 for attorneys' fees and costs.
Also, when employers choose to participate in the program and proactively work with WHD to fix and resolve the compensation practices at issue, an employer can avoid the potential for liquidated damages and civil and criminal penalties.
After 2016's glitches, the education agency forced ETS to pay $5.7 million in "liquidated damages" and asked it to invest $15 million of its own money to address the numerous logistical issues that plagued test-takers that spring, including online testing and shipping, test scoring and reporting results.
The net profit of RO9.98mn in 2017 is lower than the RO 8.46mn in 2016 mainly due to the recognition of liquidated damages and the impact by the amendment to the corporate income tax law in the Sultanate.
The liquidated damages is equivalent to the value of monthly rental.
Thus, Cummings argued, the automatic extension kicked in at the end of the lease term, leaving SpineFrontier in default of the extended lease and entitling Cummings to immediate payment of five years' rent approximately $1.7 million as liquidated damages.<br />Judge Peter M.
State auditors also faulted PTNI for failing to impose P67.179 million in liquidated damages on various suppliers that did not deliver the procured goods on time.