News & Analysis as of

Liquidated Damages Contract Terms Breach of Contract

Venable LLP

Iamaleava v. Razorbacks: Are NIL Buyouts the Future of College Sports?

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When a party to a contract fails to fulfill its contractual obligations, the non-breaching party often can seek damages or restitution. However, in the world of name, image, and likeness (NIL), it may not be so simple. ...more

Gray Reed

Disrupted Operations – Owners Beware! – Part 2 (DAMAGES)

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Liquidated damages are intended to provide predictability to the owner and contractor as to the financial consequence of not completing a project in a timely manner. Since liquidated damages are intended to compensate the...more

Lathrop GPM

New Jersey Federal Court Grants Summary Judgment Against Hotel Franchise Agreement Guarantor Enforcing Liquidated Damages...

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A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...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

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

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

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

McGlinchey Stafford on

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

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

Allen Matkins on

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

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

White & Case LLP

Managing construction risks in Asia-Pacific: Vietnam

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Changes in the construction law and favorable government policy continue to spur Vietnam's construction industry. Vietnam is the third-largest country in Southeast Asia. Due to favorable government policy and an abundance...more

White & Case LLP

Managing construction risks in Asia-Pacific: Singapore

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With a significant and coherent body of case law on construction disputes, Singapore is a hub for resolving many construction disputes across the Asia-Pacific region. Singapore is a vibrant country in Southeast Asia. With...more

White & Case LLP

Managing construction risks in Asia-Pacific: Philippines

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The Philippines construction industry is expected to grow with the introduction of the "Build, Build, Build" initiative and the amendment of a number of laws that would loosen restrictions on foreign investment. The...more

Latham & Watkins LLP

UK Supreme Court Affirms “Orthodox” Approach to Liquidated Damages in English Law

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Importantly for commercial parties, the decision indicates that parties are assumed to be aware of this approach. Liquidated damages clauses provide pre-agreed remedies for contracting parties in the event of particular...more

WilmerHale

UK Supreme Court Confirms Correct Approach to Application of Liquidated Damages Clauses When Work Not Completed

WilmerHale on

The UK Supreme Court has recently confirmed an important principle regarding the application of liquidated damages clauses. In Triple Point Technology, Inc v PTT Public Company Ltd, the Supreme Court confirmed that, as a...more

BCLP

Triple Point v PTT: UK Supreme Court also interprets a contractual cap on liability

BCLP on

The UK Supreme Court recently handed down a highly anticipated judgment on the interpretation of clauses which pertain to liquidated damages and limitations on a contractor’s liability for damages. Most notably, the Supreme...more

Akin Gump Strauss Hauer & Feld LLP

Triple Point Technology, Inc v PTT Public Company Ltd – Court of Appeal Overturned

Sir Rupert Jackson sitting in the Court of Appeal had found that the liquidated damages clause providing for liquidated damages to be paid for each day of delay by the contractor “from the due date for delivery up to the date...more

Ward and Smith, P.A.

Issues Impacting Enforceability of Liquidated Damages in Construction Contracts

Ward and Smith, P.A. on

Liquidated damages are a sum specified in a contract as the measure of recovery in the event of a breach of the contract. Liquidated damages provisions are common in construction contracts to guard against damages that the...more

Akin Gump Strauss Hauer & Feld LLP

Take or Pay: Does the Law of Penalties Apply?

Q2 2020 saw a tangible increase in the number of queries from clients asking about the enforceability of take or pay clauses common in supply agreements. Intermingled with questions around force majeure, the key issue appears...more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] Stipulated Sum and Liquidated Damages in Infrastructure Projects: What Are They, Are They Enforceable, and How Do You...

Most parties on a construction project know that a liquidated damage may be assessed for each day of the delay past a contract completion date. However, in infrastructure and highway contracts, there are many different events...more

McAfee & Taft

Liquidated Damages in Purchase and Sale Agreements: Oklahoma

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A buyer and seller of real estate will often include a liquidated damages provision in the purchase and sale agreement as a means for stipulating the amount of damages the seller will receive in the event of a breach of the...more

Troutman Pepper Locke

GAR Know-How Construction Arbitration - United States

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Legal System - 1. Is your jurisdiction primarily a common law, civil law, customary law or theocratic law jurisdiction? Are the laws substantially derived from the laws of another jurisdiction and, if so, which? What...more

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