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Liquidated Damages Contract Terms

Vinson & Elkins LLP

A New Era in Saudi Law: The Introduction of the Civil Code

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The Kingdom of Saudi Arabia has embarked on a significant legal reform with the introduction of its first Civil Transactions Law (the “Civil Code”), which took effect on December 16, 2023. Originally published in Law...more

Davis Wright Tremaine LLP

Should Commercial Owners Require Liquidated Damages?

Commercial owners often capitulate when contractors hesitate to agree to liquidated damages for construction project delays. More often than not, owners should demand that contractors accept liquidated damages, in lieu of an...more

Stoel Rives -  Ahead of Schedule

The Role of Liquidated Damages Provisions in Construction Contracts

Considering all that can go wrong on a construction site, it can seem like a miracle that anything is ever built. Construction projects can be massive undertakings, often with millions of dollars at stake, requiring the...more

Lathrop GPM

California Federal Court Declares Arbitration Clause Unenforceable

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In Munoz, v. Earthgrains Distribution, LLC, 2023 WL 5986129 (S.D. Cal. Sept. 13, 2023), the plaintiffs, members of a class of independent distributors of baked goods for Earthgrains and other bakeries, alleged that they were...more

Goodwin

Commercial Leasing in Massachusetts: SJC Confirms Enforceability of Accelerated Rent as Liquidated Damages

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On September 25, 2023, the Massachusetts Supreme Judicial Court issued an important decision that affects commercial landlords’ ability to accelerate rent as liquidated damages after a Lessee’s default in Cummings Properties,...more

Bradley Arant Boult Cummings LLP

Liquidated Damages Disproportionate to Actual Damages Deemed Unenforceable

Construction contacts often include provisions that provide for pre-determined or “liquidated” damages in the event of a breach. Such provisions can provide certainty to the parties as to the consequences of a breach and can...more

BCLP

Can liquidated damages clauses set general cap?

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A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of...more

A&O Shearman

Can you contract with yourself?

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While looking at the recoverability of damages, the High Court has taken a look at whether you can contract with yourself. When thought of in humans terms, the answer seems obvious: surely my left arm cannot contract with my...more

A&O Shearman

Watts at stake when there's a delay?

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The High Court has provided guidance on a contractor’s general right to suspend works, the enforceability of liquidated damages upon termination, and the recoverability of financing costs as part of loss of revenue....more

Levenfeld Pearlstein, LLC

Taking Steps to Avoid Sinking the Liquidated Damages Clause in Contracts

Many contracts contain provisions regarding “liquidated damages,” which purport to fix the amount of money that one party will pay to the other in the event of a breach of their contract. Calling them “damages,” however, is...more

Tonkon Torp LLP

The Liquidated Damages Provision in Construction Contracts: Include or Leave Out?

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When representing owners on construction contracts, I often ask the owner whether they want to include a liquidated damages provision in the contract. A liquidated damages provision describes an amount of money, agreed upon...more

Whitman Legal Solutions, LLC

What Parties Need to Know About Non-Competition, Non-Solicitation, and Non-Circumvention Provisions

Non-competition, non-circumvention, and non-competition provisions don’t only appear in employment contracts; they also are common in contracts for the sale of a business or real estate. This article is part of a series on...more

Miller Starr Regalia

Valid Liquidated Damages Or Unenforceable Penalties? A Discussion Of Recent California Appellate Court Decisions

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Contracting parties build liquidated damages provisions into their agreements in a variety of contexts. These provisions unquestionably can serve useful and legitimate functions including controlling risk exposure and...more

McGlinchey Stafford

Do I Have Standing in Florida State Court? Not So Fast.-McGlinchey Commercial Law Bulletin - January 20 2023

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Ohio- Liquidated Damages- Pacetti’s Apothecary v. Rebound Bracing & Pain Sol. Inc., 2d Dist. Greene, No. 2023-Ohio-93. In this appeal, the Second Appellate District affirmed the trial court’s decision finding that a late...more

Sheppard Mullin Richter & Hampton LLP

CFPB Proposes Registry of Terms and Conditions for Nonbanks

On January 11, the CFPB proposed a rule requiring nonbanks subject to its supervisory authority, with limited exceptions, to annually register with the CFPB regarding their use of certain terms and conditions in form...more

Morgan Lewis - Tech & Sourcing

Dependencies in Technology Integration Deals, Part 2: Remedies for Breach

In Part 1, we discussed what a dependency in a technology integration is and how to deal with it in a contract. In this installment, we’ll consider how to address the risk of the assisting party not providing required...more

Allen Matkins

California Supreme Court Denies Review Of Default Interest Decision

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California Civil Code Section 1671 provides that a liquidated damages provision is either presumptively valid or invalid depending upon the subject matter of the contract.  If the contract involves “the retail purchase, or...more

Holland & Knight LLP

Accelerated Rent Clauses in Massachusetts Commercial Leases

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Massachusetts' highest court, in its 2007 opinion in Cummings Properties, LLC v. National Communications Corp., 449 Mass. 490, 494 (2007), shocked commercial leasing lawyers by announcing that accelerated rent clauses (i.e.,...more

Goodwin

Commercial Leasing in Massachusetts: Commercial Landlord Cannot Collect Accelerated Rent as Liquidated Damages and Rent From New...

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On December 5, the Massachusetts Appeals Court issued an important decision impacting commercial landlords’ ability to accelerate rent as liquidated damages after a Lessee’s default in Cummings Properties, LLC vs. Darryl C....more

Lasher Holzapfel Sperry & Ebberson PLLC

Breaking a Commercial Lease: Things to Consider Before Termination

The world is transforming in the post-covid era and business needs are evolving as consumer habits change. These changes can directly impact the space where you conduct business and have you contemplating what to do about...more

A&O Shearman

Stop the press; a liquidated damages case that isn’t about penalties…

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You might be forgiven for thinking that any time a party wants to get out of a liquidated damages provision, it argues the clause is an unenforceable party. However, in a recent case, a contractor sought to avoid liquidated...more

Robinson+Cole Construction Law Zone

A Liquidated Damages Provision Might Not Liquidate All Potential Damages

The purpose of a liquidated damages provision in a construction contract is to establish in advance a fair amount of compensation to the injured party for a breach of contract to avoid spending time and money fighting over...more

Snell & Wilmer

Arizona Trial Court Holds Owner May Recover First-Party Consequential Damages From Subcontractor Despite Prime Contract Waiver

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In a recent Arizona case, the trial court held that an owner could sue a subcontractor directly for recovery of the owner’s consequential delay damages based on the subcontract’s express indemnity clause, notwithstanding that...more

Pillsbury - Gravel2Gavel Construction & Real...

Point Taken: The UK Supreme Court Finally Confirms the General Law of Liquidated Damages (LDs)

In a long-awaited decision which overturned the Court of Appeal’s ruling in the Triple Point Technology vs PTT Public Company case, the UK Supreme Court confirmed the general law of LDs, which is that—absent clear words to...more

Vinson & Elkins LLP

Case Update: Triple Point Technology Inc v PTT Public Company Ltd [2021] UKSC 29

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In a decision welcomed by many practitioners in the United Kingdom and further abroad, the Supreme Court of the United Kingdom recently settled the law on the application of liquidated damages in circumstance where a contract...more

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