Liquidating damages clause different types dating techniques used archaeology

Relevantly, the Court considered that liquidated damages would not be triggered on the occurrence of minor or trivial matters, such as a defective lightbulb.Rather, liquidated damages would be triggered as a result of a failure to achieve completion, which was dependent on the failure to achieve a singular obligation - the obligation to reach practical completion by the date of practical completion.If you, too, delayed the completion of the project or otherwise breached the contract, the court will consider your conduct when evaluating the merits of applying the provision.This information is provided for informational purposes only and does not constitute legal advice.It is intended to give you a broad overview of very limited issues; it is not intended to apply to every situation or to address every circumstance that may arise.As liquidated damages clauses are essential to compensate principals to construction contracts, it is important that they are drafted with proper consideration and are ultimately enforceable.One last thing to consider is why there was delay in the first place.Even if you have a valid liquidated damages provision in your contract, you may not recover under it.

This all comes down to the drafting and the underlying methodology for valuing the liquidated damages rate in the contract. A clause will be construed as a penalty where the sum payable (i.e.Parties should avoid stipulating liquidated damages rates which could be perceived as penalising a contractor for late completion.For example, when assessing what is a ‘genuine pre-estimate’ one should consider whether: A principal should not be able to recover liquidated damages as well as claim other compensation, such as damages at common law.The Court found that the liquidated damages sum was a penalty because it did not compensate the developer for the relevant breach (ie.delay) as the delay was incapable of causing any relevant financial loss.

Leave a Reply