Liquidated damages clause
Liquidated damages clause

The following Commercial precedent provides comprehensive and up to date legal information covering:

  • Liquidated damages clause

  1. 1

    Liquidated damages—short form—fixed payment(s)

    1. 1.1

      If Party A fails to [identify relevant obligation(s) to which the liquidated damages relate(s) as specifically as possible], it will pay to [Party B on demand OR Party B may set off against any sum owed by it to Party A][ for each [insert relevant time period] of failure] a sum of £[insert amount of liquidated damages][, subject to an overall aggregate amount of [insert cap]] as liquidated damages.

    2. 1.2

      The liquidated damages payment[s] in clause 1.1 [represent[s] a genuine pre-estimate of Party B’s loss and] [do OR does] not impose a detriment on Party A which is disproportionate to the legitimate interests of Party B in the enforcement of the [identify relevant obligation(s) to which the liquidated damages relate(s) as specifically as possible ][and [is OR are] without prejudice to Party A’s obligation to fulfil its obligations under this Agreement if it is reasonably able to do so].

  2. 2

    Liquidated damages—short form—percentage payment(s)

    1. 2.1

      If Party A fails to [identify relevant obligation(s) to which the liquidated damages relates as specifically as possible], it will pay to [Party

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