Commentary

64 Effect of liquidated damages provisions

BUILDING AND ENGINEERING vol 5
| Commentary

64 Effect of liquidated damages provisions

| Commentary

64 Effect of liquidated damages provisions

Where a liquidated damages provision is valid, and all necessary conditions for its enforcement have been fulfilled, the employer is entitled to claim or deduct the amount stated, even though its actual loss may be less than that amount1. Conversely, an employer whose actual loss exceeds the amount stated as liquidated damages cannot ignore the provision and claim unliquidated damages2. This is because, in the absence of a clear indication to the contrary, a liquidated damages provision is presumed to be an exhaustive agreement as to the damages payable by

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial