§ 29.4 When to Consider Liquidated-damages Provisions

LibraryDamages (OSBar) (2016 Ed.)
§ 29.4 WHEN TO CONSIDER LIQUIDATED-DAMAGES PROVISIONS

When deciding whether to include a provision for liquidated damages in a contract, an attorney should consider the benefits of the provision and analyze whether or not those benefits are applicable to the particular contract at issue.

A liquidated-damages clause provides the following benefits: (1) the parties have the benefit of knowing in advance the financial cost of breaching the contract and can balance the cost of performance against the cost of...

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